Weekly Market Update 04/10/2024
On Thursday, Sterling experienced its largest fall against the dollar since October last year, falling 1% off the back of comments from Andrew Bailey, governor of the Bank of England. Bailey told the Guardian newspaper that rate-setters could be “a bit more aggressive” if inflationary pressures continue to ease. Investor expectations for two quarter percentage point cuts by the end of the year increased to 75% from 50%.
UK house sales increased in September as lower mortgage rates continue to increase demand. According to data from Zoopla, the number of sales agreed in the four weeks to 21st September rose at an annual rate of 25%, the fastest since the spring of 2021 when the market rebounded after the first covid lockdown. Buyer’s enquiries had also increased by 26% in this period.
In corporate news, Telsa released an update this week on vehicle production, with quarterly vehicle deliveries falling short of market expectations. The company delivered 6.4% more vehicles in the three months to September than in the same period last year, but still fell slightly short of analyst expectations. Tesla’s share price fell 6% on Wednesday.
Andrea Wood, Chartered MCSI
Investment Manager
