The FTSE 100 made a solid start on Tuesday amid hopes the banking crisis which has bedevilled the markets for much of March might be starting to ease.
AJ Bell investment director Russ Mould said: “The insistence from Bank of England Governor Andrew Bailey last night that the turmoil would have no impact on efforts to fight inflation was the just the kind of messaging the market was looking for, even if Bailey is only responsible for UK banks.
“It’s all about confidence right now – and anything which reassures shareholders, creditors and depositors that their money is safe with the banks is one step further away from the carnage which claimed SVB and Credit Suisse.
“Whether a more cautious approach to lending by the industry might do some of the work for central banks is something they are all likely to be monitoring closely in the coming weeks.
“Shop price inflation figures showed the ongoing challenges in the UK, with a notable surge in food prices. This is bad news for consumer-facing firms exposed to discretionary spend as the rising cost of the weekly shop will continue to eat into disposable incomes.
“Bitcoin’s recent resurgence has hit a major bump off the back of news that crypto exchange Binance faces a potential US ban. Bold claims have been made for the cryptocurrency as a store of value in the past, but just when it starts to move higher, more volatility seems to be right around the corner.”