Home Business NewsBusiness FTSE 100 higher after US banks get reporting season off to a strong start

FTSE 100 higher after US banks get reporting season off to a strong start

by LLB Reporter
17th Apr 23 9:37 am

The FTSE 100 made brisk progress on Monday as a solid start to the US reporting season and a sprinkling of M&A activity helped buoy sentiment.

Given all the drama around the sector in recent weeks it felt important that the big American banks which reported last Friday beat market expectations.

AJ Bell investment director Russ Mould said: “While corporate announcements from the US are likely to continue to grab the headlines, a lot of the spotlight in macroeconomic terms is likely to be drawn by China with a raft of data set to be published imminently. For a FTSE 100 index teeming with resources stocks, this could have a big bearing given China is such a rapacious consumer of commodities.

“Investors will be watching closely for signs of a recovery from a Chinese economy emerging from strict zero-Covid restrictions.

“In the UK, inflation figures for March on Wednesday will reveal if the country is finally winning its battle with the rising cost of living. So-called base effects, where the point of comparison 12 months ago saw such a surge in prices due to the Ukrainian conflict, should mean a drop-off in the year-on-year reading so there may be greater attention given to the month-on-month figure.”

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