Market update 27th March

Following, global equity market falls in February and the first half of March, the last week has been a roller-coaster ride with large falls and gains being a regular daily occurrence.  In fact, it was reported on Thursday that the US equity market had entered a bull period (this happens when there has been a 20% rally from a previous low) marking the end of the shortest bear market ever.  In addition, European equity markets were reported as having the biggest three-day surge ever. These gains trimmed back slightly on Friday as most global equity markets fell back; the FTSE 100 not helped by the Prime Minister, Health Minister and Chief Medical Officer reporting that they had mild symptoms of coronavirus and were self-isolating.

	Weekly performance up to 27 March 2020	March performance to date up to 27 March 2020
FTSE 100 (UK)	+6.2%	-16.3%
Dow 30 (US)	+12.8%	-14.8%
Euro Stoxx 50 (Europe)	+7.1%	-18.0%
Nikkei 225 (Japan)	+17.1%	-8.3%

Like the global stock markets, £ Sterling recovered some lost ground last week as well closing 27 March at 1.25 US Dollars.  This was 7.0% higher than the figure at the end of the previous week (20 March) and is now only 2.8% lower than the figure at the end of February. Against the Euro, £ Sterling closed on 27 March at 1.12 Euros, which was 2.7% higher than the closing figure on 20 March and 3.8% lower than the February close. During the week, updated inflation figures, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), were reported.  It was 1.7% in February 2020 (this is February’s data which is reported in March).  This was 0.1% lower than the previous month.  The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was also 1.7% in February, also down from 1.8% in January. There were no further changes to the Bank of England base rate last week following the two previous cuts in March.  The current rate remains at 0.1%. Past performance is not a guide to future performance.  The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations.  You may not get back the amount you originally invested.