The infoshot to help kick-start your week
- The interest rate on a typical five-year fixed-rate mortgage has crossed 6% for the first time since February 2010. While rates have been increasing over the past few months driven by the BoE’s interest rate hikes, they saw a sharp increase last month in the wake of the mini-budget. The current average rate of 6.02% means hundreds of lower price mortgage deals have been taken off the market, and those coming to the end of their current mortgage agreement will pay more.
- The price of petrol is expected to rise as OPEC+ announce plans to slash daily oil production by two million barrels. The group claims it is a measure designed to stabilise prices following recent falls in demand as the global economy slows. Markets have begun to price in this information already, as the price of a barrel of Brent crude jumped 2% on Wednesday to more than $93 a barrel.
- Wall Street slid on Friday following another month of strength for the US job market. A drop in the unemployment rate to 3.5% (lower than the expected 3.7%), gives the Fed more room for jumbo interest rate hikes. Traders now see a 92% chance of a 75 basis point hike, up from 83.4% before the release of the information. The worst affected sector was the S&P 500 technology sector index, which fell 3.1% to lead declines among the 11 major sector indices.
- UK GDP (YoY Aug) data to be released on October 12th.
- US Consumer Price Index (YoY Sep) data published on October 13th. Expected to decrease by 0.2% from August.
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.Open document settingsOpen publish panel