Market Summary Week Ending 02/04/2023

Global markets received a boost on Friday after the Federal Reserves preferred inflation gauge showed a lower than expected increase in prices. The core Personal Consumption Expenditures index (PCE Index) which excludes energy and food costs, rose 0.3% in February, less than the 0.4% expected by market analysts.

We also saw Inflation data across the Eurozone area released, with sharp falls seen in prices to its lowest level for a year after a decline seen in energy costs. Consumer Prices rose 6.9% in the year to March, down from 8.5% for February, the lowest levels seen since February 2022.

As a result, for the trading month, the S&P 500 and Nasdaq gained 3.51% and 6.69% respectively, with The Dow Jones Index also advancing by 1.89%.  This saw a positive end to a tumultuous month, following the declines seen in the regional US banking sector as well as the issues seen with large European Banks, through the bailout of Credit Suisse by UBS and the loss of confidence seen in Deutche Bank last week.

In the UK, The FTSE 100 has closed at the highest level in three weeks, following a week where the index gained every day, achieving 2.22% as a whole, buoyed to a confident finish for the quarter by positive inflation data from the Eurozone and US, as detailed above.

Please note for this weekly summary, we focus on the major indices within the financial markets such as the FTSE 100 (UK) and the Dow Jones and NASDAQ (US) to provide a factual account of what has happened within a certain index. Performance figures quoted are factual from the previous week’s trading and this summary is for commentary purposes only. 

The performance of these indices is not a representation of an individual fund or portfolio. Past performance is no guarantee of future returns. The value of your investment can go down as well as up. You could get back less than you originally invested.