UK MARKETS

Solid performance on the back of large cap selections and higher oil prices

UK equities performed well in sterling terms, owing to the macroeconomic backdrop; dollar feed-through on larger cap selections and higher oil prices being the key drivers of index performance. The underlying benefit to energy companies saw BP and Shell, up circa 8%, lead the market. Natural Resources and Financials fared well too, all boosting the FTSE 100. The mid-cap FTSE 250, which has more domestic earnings, was modestly lower, while small-cap stocks had a stronger second half of the month, boosted by the better inflation data. Index Linked Gilts lagged, as inflation data surprised to the downside.

Up 1.7% (UK All Share)

Unlocking the Potential of Your Money: Why Smart Investment Choices Lead to Long-Term Wealth Growth

“It’s not enough to succeed, others must fail…” Gore Vidal

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UK MARKETS

Weak first half followed by a late month rally

UK equities mirrored global trends, with a weak first half followed by a late month-end rally. However, returns lagged other developed markets. Unlike the US, there was little difference in performance across the market cap spectrum. Despite better inflation data in the previous month, August showed more modest progress. That, and concerns over the scale of future gilt issuance levels, as well as a continued hawkish tone from the Bank of England, saw short term Gilt yields move higher, with 2yr Gilt yields moving up from 4.99% to 5.16%.

Down -3.3% (UK All Share)

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You may already be familiar with the concept of earning interest such as through your bank account. You put in £1000, the bank pays you say 2% per year and at the end of the year you’ve earned £20.

It doesn’t sound much I know. However, compound interest refers to the interest you then earn on that £20, so you have earned interest on your interest. This means even if you didn’t put more money into the bank, the amount you earn increases each year.

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UK MARKETS

Inflation continues to impact sterling and UK markets overall

Disappointingly strong core inflation data precipitated a 0.5% Base Rate increase from the Bank of England (BoE), to 5%. The greater than expected June hike pressured short-duration sterling bonds. After a torrid start to the year, longer-dated bonds found some solace in the more hawkish BoE stance. The stronger pound was supported by the bond market pricing in a Base Rate of 6% by year end. Impacted by the strong pound, UK equities, particularly the more economically sensitive mid-caps stocks, lagged most other developed markets.

Up 0.7% (UK All Share)

Despite its recent weak economic performance, China’s return to the markets will have an impact on oil going forward.

Ever thought about what kind of money personality you have?

We like to think of it as being one of three types: The Saver, The Spender, or The Investor, each with its own unique money personality, and its own style and way of handling their cash.

We'll help you figure out the different money personality definitions, explore their investment behaviour to discover which one you are and chat about the kind of investment strategies that could be your perfect match.

Despite its recent weak economic performance, China’s return to the markets will have an impact on oil going forward.

UK MARKETS

Inflation continues to impact sterling and UK markets overall

Disappointingly strong core inflation data precipitated a 0.5% Base Rate increase from the Bank of England (BoE), to 5%. The greater than expected June hike pressured short-duration sterling bonds. After a torrid start to the year, longer-dated bonds found some solace in the more hawkish BoE stance. The stronger pound was supported by the bond market pricing in a Base Rate of 6% by year end. Impacted by the strong pound, UK equities, particularly the more economically sensitive mid-caps stocks, lagged most other developed markets.

Up 0.7% (UK All Share)

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