Our Latest Monthly Economic Review: October 2019
UK set to avoid recession • At the end of October, talk of renewed trouble in US-China trade negotiations cast doubt on the
possibility of a long-term trade deal. The news knocked sentiment recently lifted by growing optimism the Phase One deal would be concluded in November. • In the UK, at the end of the month, markets braced for a wide array of Brexit possibilities after parliament approved a December election. October 31 marked the first full day of campaigning for Boris Johnson and his rivals. The more domestically focused midcap index closed marginally up at month end, while the large cap index lost 2.16% in October. • In the US, investors continued to digest the Federal Reserve’s latest interest rate cut and commentary, as well as a host of major corporate
quarterly results as earnings season rolled on. The NASDAQ Composite was buoyed by results from Apple and Facebook, the Dow Jones finished marginally up (0.48%). • On the foreign exchanges, sterling closed the month at $1.29 against the US dollar. The euro
closed at €1.16 against sterling and at $1.11 against the US dollar. • Gold is currently trading at around $1,512.46 a troy ounce, a gain of 2.74% on the month, as trade woes brought the precious metal back in favour. OPEC (Organization of the Petroleum Exporting
Countries) oil output bounced in October from an eight-year low as a rapid recovery in Saudi Arabian production offset losses in Ecuador and voluntary curbs under a supply pact. Brent crude is currently trading at around $60.21 a barrel, a loss of 0.94%
on the month. (Data compiled by the Outsourced Marketing Department) SFFS Economic Review_Oct 19
