The Monday note - 29 October 2018

• The FTSE 100 closed at 6,939.6 on Friday afternoon, hitting a 22-month low, as disappointing earnings from US tech companies and declines for Rolls-Royce and RBS knocked sentiment. 
• US GDP expanded by a better than expected 3.5% in Q3 2018, on an annualised basis. The figures were boosted by strong consumer spending. 
• Heathrow airport has raised £1.6bn from global investors to reinforce its financial strength and ensure continued expansion funds as Brexit approaches. 
• A Confederation of British Industry (CBI) survey found that factory orders are declining at their fastest pace since the referendum. 
  
  

Chief Economist comments: 

The tech shares slide continues, undaunted by robust US GDP figures. The markets are certainly in the mood for accentuating the negative, probably because equities have had a long bull run and nothing lasts forever. Until a consensus emerges on what the next ‘must have’ investment is, markets will remain choppy. However, note that this burst of stock market volatility is occurring to a backdrop of largely upbeat economic indicators.