Weekly Round Up
UK markets were relatively stable this week with the FTSE 100 Index ending at 7,115.62 points, gaining 0.37% from Monday’s open at the time of writing.
Positivity in UK markets came on the back of a batch of strong earnings reports and signs of a strong economic recovery. On Thursday, the Bank of England left monetary policy unchanged and raised inflation forecasts, while officials signalled some modest tightening of monetary policy over the next two years is likely to be necessary. UK house prices rose 0.4% in July, partially recovering from a 0.6% fall in June as a shortage of homes on the market helped soften the impact of a reduced tax break for buyers.
In China, the Shanghai Composite Index lost 0.2% on Friday but rose 1.5% during the week, supported by hopes that the government may launch new stimulus following severe floods in central China.
Nearly three dozen of the most influential business groups have asked President Joe Biden’s administration to restart trade talks with China and cut tariffs on imports, according to the Wall Street Journal. Investors were slightly downbeat on China on Friday after the news that the country saw its highest count of Covid-19 cases in the current outbreak, due to a surge in locally transmitted infections.
In the US, the S&P 500 Index and the Dow Jones Industrial Average traded 0.32% and 0.51% higher respectively on Thursday’s close, ahead of the release of the US jobs report and as the earnings season continues.
The American economy is forecast to add 870 thousand jobs in July, the strongest job growth since last August and as unemployment likely fell to 5.7%, the lowest since March 2020. The labour market continues to recover from the pandemic, supported by broader economic reopening and the rapid pace of the vaccination roll-out, coupled with ongoing government support.
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