October wealth update: Another Brexit extension
October came and went with Brexit being extended again and the opposition parties finally agreeing to Boris Johnson’s request to go to the polls with a general election now called for 12 December.
The FTSE 100 ended October at 7,248.38 which was 2.2% lower than September’s closing figure.
In the US, the Dow Jones 30 was 0.5% higher ending October at 27,046.23.
Regarding currency, £ Sterling ended October at 1.29 US Dollars. This was 5.3% higher than the closing figure at the end of September.
Against the Euro, £ Sterling ended October at 1.16 Euros, which was 2.8% higher than the September closing figure.
Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 1.7% in September 2019 (this is September’s data which is reported in October). This was unchanged from the previous month. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 1.7% in September 2019, which was similarly unchanged from the previous month.
The Bank of England maintained interest rates at 0.75% in October. The last change was an increase in August 2018. This means long-suffering deposit savers are likely to continue to lose money in real terms when you consider the rate of savings interest compared to the rate of inflation.
With external influences remaining uncertain, it is likely to remain a volatile period for investors. So, it is increasingly important to invest in a well diversified investment proposition.