Market Summary Week Ending 10/09/2023

Investor optimism across the major indices was subdued this week, as investors continue to wait and see the decisions made by the major central banks regarding interest rates at their meetings scheduled for later this month.

Signals have been mixed about the possibility of further rate rises by both the Federal Reserve and Bank of England. The Bank of England’s chief economist warned at the end of August that there was “no real room for complacency” in bringing inflation down back to target, suggesting more rate hikes may be in the pipeline.

In the UK, both of the major indices felt this lack of optimism with flat weeks regarding performance, with the FTSE 250 down 0.25% for the week and the FTSE 100 squeaking out a small gain of 0.36%. This comes after positive performances seen on Friday within the consumer goods sector, with positive performances noted by JD Sports and Next.

In the US, investors remain caught in limbo over the decisions to be made by the Federal Reserve as they continue to juggle the responsibility of keeping inflation low, whilst also avoiding the possibility of a recession. This comes as recent economic data has reignited concerns that the Federal Reserve may have further work ahead in respect of raising interest rates further.

As a result, all the major averages capped off losing weeks. The S&P and Nasdaq dropped 1.3% and 1.9%, respectively; a first negative week in three for both indices. The Dow Jones also struggled, finishing about 0.8% lower.

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.