Market Summary Week Ending 20/11/2022   

The focus in the UK this week was on the release of October’s inflation data on Wednesday and the Autumn Statement from the Chancellor, Jeremy Hunt, on Thursday.  

Data shared on Wednesday showed that the Consumer Price Index (CPI), the measure of inflation, continued to increase with another rise of 1.00% from 10.1% for September to 11.1% in October. This came in stronger than expected versus the analysts’ forecast of 10.7%.  

As always, CPI data will influence the Bank of England’s decision on potential interest rate increases at their next Monetary Policy Committee meeting in December. Their overall aim remains to bring CPI (inflation) in line with their longer-term target of 2%.   

Thursday saw the Autumn Budget Statement from the Chancellor, with varying tax rate increases announced as part of his plans designed to address rising prices and begin to restore the UK’s credibility with international markets. For further information on the Autumn Statement, please see our dedicated statement here.

Despite these announcements, over the week the FTSE 100 added 0.9%, with a slight rally on Friday of + 0.53% across the day, as inventors began to digest the rising inflation figures as well as the policies introduced in the budget. 

In the United States, stocks advanced on Friday after a shaky trading week marked by mixed retail earnings, with higher-than-expected figures further fuelling inflationary fears as well concerns about potential further interest rates increases. To close the trading week, The Dow Jones increased by 0.59%, while the S&P 500 climbed 0.48% and the Nasdaq Composite finished 0.01% up.  

Across the week however, all the major averages posted losses because of the factors detailed above, with the Dow Jones closing 0.01% lower, the S&P 500 losing 0.69% for the week and the Nasdaq closing 1.57% lower. Despite this, all three indexes are positive for the month of November.  

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 intended as commentary 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 invested.