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FTSE 100 enjoys bounce after Wall Street rally

by LLB Editor
14th May 21 10:44 am

It has been a turbulent week as the sceptre of inflation once again spooked investors however it looks like last night’s Wall Street rally is providing a port in a storm for the FTSE 100 as it enjoyed a solid bounce on Friday morning.

“The big economic update coming down the pipe later is the US retail sales release. We’re operating in a through the looking glass world where seemingly bad news is taken positively by the markets on the basis it means central banks won’t pull back on the stimulus front or put up rates.

“If retail sales have surged across the Atlantic then that would likely be a headwind for equities as it would stoke the concern about rising prices and what the US Federal Reserve might need to do to keep them under control,” says AJ Bell investment director Russ Mould.

“Keeping cases of the so-called Indian variant of Covid-19 under control is the something the UK is facing up to and it is prompting some concern that the next phase of reopening might be delayed, or localised restrictions introduced. This uncertainty could hit the hospitality and travel sectors.”

 

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