UK Markets Narrative Wed 31 Oct 18 EOD

And so October comes to a close, one of the most tortuous month's for the UK markets in years with seismic shifts in many of the UK markets that may prove to be very significant in term so the overall health of the market

What we know

AIM got punished the most this month and was down almost 15%at one stage closing up today to end the month down 12%

The FTSE 250 MCIX which was down 12% at its lows will finish down 8% from the start of October

The FTSE 100 and FTSE 350 recovered some more today to end the month down 6% and coming off a lows of -10%.

Significantly today saw the NMX, the UKX close above their 21EMAs which is a good sign that the recovery is well under way. Typically, two or more consecutive close above this level is a strong indicator of a trend change

Today’s outperforming sectors included O&G producers up over 3% along with Mining up a similar amount; Support services gained 2% while Banks were up 1%

Only Tobacco, Utilities, Personal Goods and F&D Retail pulled back this suggest that the more defensive rotations may be fading in favour of risk

It is early days but it would seem that the worst is behind us for now but we must recognise that these types of sudden corrections can have aftershocks and may be indicative of more volatility to come.

GBP gained 0.35% against USD while Oil was flat on the day. Gold and silver took significant hits as risk returned to markets while all the base metals were down moderately

UK Markets Narrative Wed 31 Oct 18 EOD

Opening Pops 'n Drops