The FTSE 100 index of leading UK company shares finished August at 7,432.42 points, down from 7,748.76 points at the end of July. This represents a fall of 316.34 points or 4.08% during the month. The fall in the value of the index during August was driven primarily by anxiety surrounding speculation the UK could leave the Europe Union with no trade deal in place. Fears that the economic crisis in Turkey could spread to other emerging market economies also contributed to poor investor sentiment. Pound sterling fell to a nine-month low against the euro in August as well as losing ground to the Swiss Franc, the Yen and the US Dollar. The fall in sterling comes despite the increase in interest rates last month which usually strengthens the value of a currency. The decrease resulted from continued uncertainty over Brexit with Bank of England governor Mark Carney saying the chances of a no-deal Brexit were “uncomfortably high”.
September 2018 Investment & Economic Update
This 1,160 word blog post looks at the latest monthly investment update for September 2018, and how investment markets, global economy and commodity prices are performing. Written on 3rd September 2018