Meet the team
Tim Adams Independent Financial Adviser
Market Commentary
Hello and welcome to our latest Market Commentary.
The idea behind these updates is really simple. There is an awful lot of noise out there at the moment, so I want to cut through the headlines and explain what is actually happening and, more importantly, what it means for you and your money.
The commentary on this page is for general information purposes and does not consitute financial advice, a personal recommendation or an invitation to take any particular course of action.
The Big Picture - What's Going On
The main story is higher borrowing costs, rising energy prices and nervous markets.
Governments borrow money by selling bonds. The interest rate investors demand for lending that money is called the yield. This week, those rates rose sharply: the UK’s 30-year rate briefly reached 6%, and the US 10-year rate reached its highest level since 2002. In simple terms, borrowing became more expensive. Shares fell during the week, then recovered slightly on Friday after weaker US jobs figures.
The Numbers at a Glance
FTSE 100: down 2.2% over the week, despite a small Friday recovery.
UK inflation: 3.1% in August. The Bank of England kept its main interest rate at 3.75% in September.
Eurozone inflation: rose to 3.8% in September, mainly because energy prices rose sharply.
US jobs: 29,000 were added in September, compared with about 90,000 expected. Unemployment edged up to 4.2%.
Oil: Brent ended the week close to $100 a barrel, keeping pressure on household and business costs.
Why Does That Matter?
When governments have to offer more interest to borrow, it can push up borrowing costs elsewhere too, including mortgages. It can also reduce the value of some existing investments, such as bonds. At the same time, new savings and annuity offers may become more attractive.
Higher energy prices can also put pressure on household budgets and keep inflation high.
For UK investors, the 28 October Budget is another source of uncertainty. Possible tax changes are still speculation until they are announced.
Is the Economy Actually Doing Badly?
The picture is mixed. US hiring has weakened, while energy prices are pushing inflation higher in Europe and the UK. This makes the outlook uncertain, but these figures alone do not mean a recession is inevitable. Markets are reacting to uncertainty as well as to the data.
What Does This Mean For Your Pensions and Investments
A difficult fortnight can feel unsettling, particularly if you are taking income from your investments. The key question is whether your plan, cash reserve and withdrawals still suit your needs—not whether markets had a difficult week.
What should you do?
Keep your longer-term plan in view. Check upcoming spending needs, mortgage or savings maturities, and whether your pension withdrawals remain sustainable. If you were already planning a major financial decision, take advice based on your circumstances.
What shouldn’t you do?
Do not sell investments or move everything into cash because of a worrying headline. Do not make rushed pension or tax decisions based on Budget rumours.
What Are We Watching Next?
The next UK inflation figures are due on 21 October, followed by the 28 October Budget.
Energy prices, borrowing costs and whether higher costs are spreading into wages and everyday prices remain key.
Martyn's Final Thought
Markets can be uncomfortable even when a long-term plan remains sound.
Stay diversified, keep enough accessible cash for your needs, and make changes for a reason—not because the headlines are loud.
Fortunately, there is always another day.
This commentary reflects the views of Martyn Brown and Abacus Financial Options Ltd. It is for general information only and should not be treated as financial advice or a personal recommendation. Any decision should take account of your individual circumstances