The FTSE 100 made sedate progress on Monday morning although you would imagine investors would take that after something of a wild ride last week driven by inflation fears and a bitcoin crash.
The cryptocurrency remains more up and down than a yo-yo, enduring further heavy losses over the weekend before staging a modest recovery amid a crackdown in China.
The UK’s flagship index traded higher despite miners’ share prices being pulled down by falling iron ore prices as Chinese authorities warn of excessive speculation.
“Observers will be asking if this is the week the FTSE 100 finally pushes ahead of the 7,000 mark after a period of going backwards and forwards around this level,” says AJ Bell investment director Russ Mould.
“A second estimate of US GDP on Wednesday may provide some direction, in addition to consumer confidence and price data which should help show whether the world’s largest economy is simmering nicely or is in danger of bubbling over.
“After recent evidence of rapidly rising prices in the UK, there is likely to be considerable attention on Bank of England Governor Andrew Bailey and his colleagues when they appear before MPs to testify later.
“Like a master investigator, the markets will be laser focused on the slightest clue their words might offer on the future trajectory of interest rates and financial stimulus.”
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