Monthly update: Markets move sideways

12 October 2018

By Sheldon Macdonald, Co-Fund Manager HC Verbatim Multi-Index Funds

It was an up and down month for the UK equity market, which continues to be beset by uncertainty around Brexit negotiations. As a result of this uncertainty, the value of sterling fluctuated in September. This had a knock on effect on equities, which although also saw some highs and lows ended the month relatively flat.

The trade war initiated by President Trump is still being waged without any further surprises. The implementation of the previously announced tariffs by the US and the retaliation by China was largely expected so did not really move equity markets. Perhaps as a result of no further surprises we have started to see a recovery in emerging markets, which are badly affected by worsening trade relations.

Japan is one market that has begun to outperform alongside the US following positive retail sales and economic growth figures.

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