Market updates for November 2019

Domestically, November saw campaigning for the forthcoming General Election while globally, Donald Trump’s tweets on increasing trade tariffs had an impact on Equity markets. With the General Election now just over a week away, the Conservatives are leading the polls and the betting odds but the outcome remains relatively tight and uncertainty still remains as to who will be occupying 10 Downing Street from Friday 13 December. The polls are suggesting that a Conservative majority has a 68% chance of being the outcome and betting odds are showing a Conservative majority of 66%. The FTSE 100 ended November at 7,346.53 which was 1.4% higher than October’s closing figure. In the US, the Dow Jones 30 was 3.7% higher ending November at 28,051.41. Regarding currency, £ Sterling ended November at 1.29 US Dollars.  This was largely unchanged from the figure at the end of October. Against the Euro, £ Sterling ended November at 1.17 Euros, which was 1.2% higher than the October closing figure. Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 1.5% in October 2019 (this is October’s data which is reported in November).  This was down from 1.7% 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 1.5% in October, similarly down from 1.7% in the previous month. The Bank of England maintained interest rates at 0.75% in November.  The last change was an increase in August 2018.