As you may be aware, we’ve seen highs and lows in the market throughout October, as markets in financial centres such as the US (e.g. S&P 500 –6.84%) and UK (e.g. FTSE100 –4.85%) continued to react sensitively. Although both of these indexes posted losses for the month, we saw a strong rally as we hit month end.
The US and China
We’ve seen some constructive trade discussions between the US and China which have certainly bolstered the markets. Asian stocks surged in early trading Friday, following what President Trump described as a ‘long and very good conversation’ with Chinese President Xi Jinping. Discussions will continue at the G20 summit at the end of November, and a deal currently looks likely.
The Autumn Budget
At home, last week Chancellor Philip Hammond’s Autumn Budget puts extra money in consumers’ pockets, with the personal allowance threshold rising to £12,500 from April, and the higher rate income tax threshold increasing to £50,000. This could put more money into the UK retail sector next year with increased consumer spending.
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