Newsletter 21st Feb

As we navigate the financial landscape this week, several pivotal developments are shaping the UK’s economic and investment environment. Notably, the recent surge in inflation to 3% in January, which is unexpected and may place further pressure on interest rates. 

In parallel, the all important labour market presents a slightly trickier picture. Data released this week showed that wage growth has accelerated, with total pay rising by 6% annually in the last quarter of 2024. However,  job vacancies continued to decline, reflecting ongoing strains on both household and corporate finances. It’s a mixed bag! 

For women taking charge of their investments, these developments only go to highlight the importance of informed decision-making and proactive financial management, which is what we strive to help you with here at Propelle. Understanding the broader economic context can empower you to navigate uncertainties and identify opportunities aligned with your financial goals. Let’s take a deeper look. 

Top 5 Market Headlines of the Week

Here we list some of the biggest headlines that we’ve seen this week that might affect you and your investments. 

• UK inflation climbs to a 10 month high of 3% in January
• Reserve Bank of Australia drop interest rates for first time in over 4 years from 4.35% to 4.1%
• US supermarket giant Walmart see share prices drop in face of potential tariffs 
• European banking sector might be more attractive than US tech stocks (if you look at the right data)
• Alleged car finance misselling has left Lloyds with an eyewatering potential £1.1 billion bill

Sources: Reuters, The Guardian, Financial Times, The Times

Upcoming events

Do you love the idea of combining a love of fashion with making money? We know we do. Which is why we just had to get something lined up for all you ladies online. In March we will have our very own expert, Meg Randell, from the auction house Bonhams, talk to us about making money from handbags. You won’t want to miss this!

Little learn of the week

How do they pick the CPI?

CPI stands for Consumer Price Index and measures the price of hundreds of everyday items, tracked by the Office of National Statistics in the UK. The basket of goods that are tracked are adjusted for current trends. For example, this year saw the arrival of airfryers and vinyls, whilst hand sanitiser and bizarrely sofa beds got the cull, amongst other items. This basket of goods helps us to see the eventual inflation figures, such as this week’s data that in the UK, it’s back up to 3% in January.

Major indexes & Propelle Funds

Last Week’s Major Indexes

Before we dive in…

Indices are lists of major sections of a market. Basically, they give a gauge of the health of a certain financial market. You’ll see below the value of some major global indices, as well as how much it changed last week, with a percentage.

FTSE 100 (UK): 8,677.00 -0.64%

S&P 500 (US): 6,117.52 +0.94%

Euro Stoxx 50 (Europe): 5,477.21 -0.36%

Nasdaq (US): 19,962.36 +1.35%

Dow Jones (US): 44,176.65 -0.56%

Accurate as of Friday 21st  Feb 1100

Propelle Funds

We have a selection of funds available on our Propelle investing app, specially selected to be diverse and suitable for a range of investors. Whilst all investing should be considered long term (minimum of 5 years), it can be helpful to understand how each fund is doing. Here’s some notable updates from our Propelle funds.  

Have you seen our unique Shariah fund?

The HSBC Global Funds ICAV – Shariah Multi Asset Fund, launched in 2023, offers Muslim investors a diversified, Shariah-compliant investment vehicle across equities, Sukuk, and commodities. 

This means that it avoids prohibited industries like alcohol, gambling, and interest-based activities, ensuring compliance through an independent Shariah committee. 

Key holdings include HSBC’s Islamic equity and Sukuk ETFs, alongside gold investments adhering to Islamic principles. This gives many muslim women an investing option that might not be seen on other platforms. 

Mini Market Deep Dive

Pesky inflation creeps up to 3% again in January

This week, the UK’s inflation rate unexpectedly rose to 3% in January 2025, the highest in ten months, driven by increased costs in airfares, food, and private education.

For those living in the UK, this surge means once again facing higher household expenses, potentially outpacing wage growth and straining budgets. The rise in inflation could also impact the upcoming spring budget, which could feed into key interest rate decisions all of which could further influence disposable income and financial planning. Rather than panic, many will want to start with what they can: look at budgets, keep a handle on debts and maintain a diversified view with financial decisions. 

Source: BBC

Fear & Greed

The Fear & Greed Index is a way to gauge stock market movements and investors attitudes. The theory is based on the idea that excessive fear tends to drive down share prices, and greed tends to see share prices rise.

Whilst it’s based on the US, it matters to us in the UK because it helps us to understand where general sentiment of the US market sits, which often has very close ties to other global markets and investment portfolios.

The fear and greed chart is still at 45, reliably remaining in neutral as it has done for a fair few weeks now. Whilst there are seemingly a lot of alarming headlines, investors aren’t drifting into fear quite yet and being sufficiently buoyed by positive news. 

Keep your eyes open for next week’s latest and how these market movements affect your finances and investments.