Financial turmoil in Turkey and Brexit clouds loom as we look at what happened in the markets in August.
Turkey and takeover rumours: the markets in August
It is often a struggle to find news flow over the main holiday month of August, despite it being a period for companies to report to the market. The FTSE 100 looks like finishing the month slightly lower, not helped by concerns over the financial crisis in Turkey and the consequences for European banks and other emerging markets. The Bank of England’s decision to raise rates did not come as a surprise and had little effect on the markets, as it was a case of being already priced in. While across the pond the S&P 500 hit new all-time highs helped at the end of the month by a trade agreement with Mexico.
Companies where take-over rumours have circulated include; RPC, Wm Hill, RSA and Spire Healthcare. There were also thoughts that BT could be a break-up candidate and that an activist investor may be taking an interest in Vodafone. There were comments in the press that Prudential’s Asia and UK business will attract interest in the near future, as well as the possibility of EchoStar returning one day for Inmarsat.
As we head towards the autumn the cloud that is Brexit is increasingly likely to hang over the market. At the time of writing sterling has edged higher on market hopes regarding a potential deal between the UK and Europe.
Hopefully we will have more to comment on in September and that the England – India series keeps football off the back pages for a short while.
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