Market Summary Week Ending 13/08/2023

Across global markets there were concerns over the state of the Chinese economy after data revealed during the week showed that the economy has fallen into disinflation as the country struggles further to revive consumption following the effects of the COVID 19 pandemic.

In the UK, GDP figures came in stronger than expected across the second quarter, the economy grew 0.2% following a 0.1% expansion in the first quarter, the Office for National Statistics (ONS) estimated. The Bank of England forecast a 0.1% expansion in the second quarter.

Across the trading week it was mixed fortunes for both of the major indices, with the FTSE 100 managing a small gain of 0.02%, whilst the FTSE 250 made a small loss across the trading week of 0.24%

Over in the US the headline consumer price index (CPI) rose to 3.2% in the year to July, up from 3.0% last month but marginally lower than market expectations. Month after month, prices increased 0.2%. Core inflation, which strips out more volatile components such food and energy prices, fell to 4.7% from 4.8% last month.

Despite the increase seen in inflation, many analysts have speculated that this will not be a catalyst for any further increases in interest rates by the Federal Reserve.
Across the trading week, the S&P 500 and the Nasdaq declined about 0.3% and 1.9%, respectively, on the week. Both registered their second straight losing weeks, a first of that length for the Nasdaq since the conclusion of a four-week losing streak in December 2022. The Dow Jones was the outlier of the three major averages, advancing 0.6%.

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.