Extract from Redwood Financial’s Economic Review July 2019 Data supplied by TOMD
In the UK, the main blue-chip index, the FTSE 100 was up 2.17% in the month to end on 7,586.78. The mid cap index, the FTSE 250, followed suit, gaining 1.05%. In European markets, the Euro Stoxx saw a drop of 0.20% in the month.
In the US, the Federal Reserve cut interest rates at the end of the month, the first cut in a decade. Contrary to expectations, the head of the US central bank said the move might not be the start of a lengthy series of cuts to shore up the economy against risks, including global economic weakness. The Dow Jones and NASDAQ closed the month up 0.99% and 2.11% respectively.
On the foreign exchanges, sterling closed the month at $1.21 against the US dollar. The euro closed at €1.09 against sterling and at $1.10 against the US dollar.
Brent crude dropped 0.51% in the month, to close at $64.06 a barrel. This drop came despite a bigger-than-expected decline in inventories in the US and a drop in crude production among OPEC members, along with Libya cutting exports. US output remains well supplied. Gold closed the month up 0.32% on $1,413.71.