Courtiers Wealth Management
Courtiers Wealth Management

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November 2021 – Market Commentary

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Despite ongoing concerns regarding inflation and supply shortages, global equity markets offered positive returns in October. The FTSE 100 index, which tracks the largest companies in the UK, reached its highest level since before the pandemic, while the S&P 500 index in the US reached a new all-time high. Oil prices continued to rise, with the price of a Brent crude oil futures contract surpassing $80 per barrel for the first time since 2018.

Domestic matters

Chancellor Rishi Sunak delivered his Autumn Budget to the House of Commons. Among the key announcements were a rise in the National Living Wage to £9.50 per hour and an 8% cut to the Universal Credit taper rate. As usual the Budget was accompanied by the latest economic forecasts from the Office for Budget Responsibility (OBR). The UK’s GDP growth estimate for 2021 was revised upwards from 4% to 6.5%, with a further 6% growth expected in 2022 before dropping back to 2.1% in 2023. Inflation meanwhile is expected to average at 4% over the next year, well above the Bank of England’s targeted rate of 2%.

Full round-up of October’s performance

Here is the full round-up of October market performance. In the UK, the FTSE 100 index rose 2.21%, while medium and smaller companies, measured by the FTSE 250 ex IT index and the FTSE Small Cap ex IT index declined 0.24% and 1.18% respectively. In the US, the S&P 500 USD index surged 7.01% while in Europe the Eurostoxx 50 EUR index gained 5.18%. Japanese stocks measured by the Topix JPY index slipped 1.42%.

Emerging markets had a mostly positive month, with the MSCI Emerging Markets index rising 0.91% in local currencies. Chinese equities measured by the MSCI China local index jumped 2.99% while Latin American equities, measured by the MSCI Latin America local currency index, slumped 3.34%. Indian stocks rose 0.30% according to the Nifty 50 INR index.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, were up 2.15%, while long dated (over 15 years to maturity) gilts climbed 5.51%. Sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, gained 0.45%. In the high yield market, the Bank of America Merrill Lynch Sterling High Yield index declined 0.91%.

There were positive returns in the commodities market. The S&P GSCI USD index, which consists of a basket of commodities including oil, metals and agricultural items, gathered 5.80%. This was led by the rise in oil price, as crude oil futures rose 11.38% during the month. In the agricultural markets, corn and wheat futures picked up 5.87% and 6.51% in USD respectively, and in the precious metals markets, the S&P GSCI Gold and Silver indices amassed 1.53% and 8.63% in USD respectively.

In the currency markets, it was a stronger month for the pound as it appreciated 1.54% against the US dollar, 1.73% versus the euro and 4.03% against the yen.

Important Information

Issued by Courtiers Asset Management Limited, CAM0421626 Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Tel: 01491 578368

Past performance is not a reliable indicator of future returns. The value of investments, and the income from them, can go down as well as up and is not guaranteed and you may not get back the amount originally invested. Any forecast, projection or target where provided is indicate only and is not guaranteed in any way. Certain types of funds might carry a greater investment risk than other investment funds. Further details of the risks are associated with investing in Courtiers funds can be found in the Key Investor Information Document or Prospectus, copies of which are available on request or at www.courtiers.co.uk.

Disclaimer
This communication is for information purposes only and should not be relied upon in making an investment decision. The views expressed by individuals and the business are based on market conditions at the date of issue and are subject to change without notice. The mention of any stocks or shares should not be taken as recommendation to deal and does not take into account the individual investor’s investment objective or risk profile. Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. Any third party sites, or pages which are linked to the document, have not been reviewed by us and therefore we accept no responsibility for the authors or content of external link or pages. If you are interested in any of Courtiers Asset Management Limited’s range of funds, or require any financial advice, please speak to a financial adviser.

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