Market Summary Week Ending 10/12/2023

Last week was quiet across the major indices, with positive economic news coming from the US, ahead of a key week for both Inflation and Interest rates. Announcements are expected from both the Federal Reserve and the Bank of England.

In the US, November’s Jobs Report showed that the jobless rate fell to 3.7% in November from 3.9% the prior month, despite analysts’ expectations that it would remain the same. The economy added 199,000 jobs, slightly ahead of the 190,000 estimates from Dow Jones.

The results have boosted optimism with traders that the US is on for a ‘Soft Landing’’ through a steady economic recovery amid falling inflation and interest rates. Some trader’s expectations are that the Federal Reserve will begin to cut rates as early as next spring.

As a result, all the major averages finished the week with gains. The S&P 500 jumped 0.2% for the period, and Dow Jones finished marginally higher. Both indexes wrapped six winning weeks, their longest run since 2019, with the Nasdaq also advancing 0.7%.

In the UK, it was a positive week for both of the major indices, with gains made by the FTSE 100 & 250 of 0.56% and 1.96% respectively.

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.