Blackfinch Spring VCT PLC has provided a weekly market update, summarizing global events. In the UK, business activity in the manufacturing and services sectors declined in September, with the manufacturing sector experiencing the longest streak of falling output since 2008-2009. The rate of UK unemployment also rose to 4.2% in the three months to the end of August. Government borrowing reached its highest level since 1998, and UK retail sales volumes fell 0.9% in September.
In North America, the University of Michigan's Consumer Sentiment Index declined in October, largely due to higher-income consumers with large stock positions being affected by the recent weakness in equity markets. The US issued a second batch of sanctions on Palestinian group Hamas, targeting a Hamas official in Iran and members of Iran's Islamic Revolutionary Guard Corps. The US also posted a strong 4.9% annualized jump in gross domestic product (GDP) in the third quarter, driven by a surge in consumption.
In Europe, the Eurozone's composite PMI fell to a 35-month low in October, with both the manufacturing and services sectors declining. The pace of contraction steepened in Germany but eased in France.
On a global scale, the Bank of Russia increased its key interest rate from 13% to 15% due to increased inflationary pressures. China announced special export permits for three grades of graphite used in lithium-ion batteries, following the US tightening its export controls for artificial intelligence chips.
This market update is provided by Blackfinch Investments Limited, which is authorized and regulated by the Financial Conduct Authority.