The FTSE 100 shrugged off a weak showing from index heavyweight Shell to trade higher as the narrative of the rate hiking cycle being close to its peak continued to hold sway.
AJ Bell investment director Russ Mould said: “As expected, the US Federal Reserve increased rates by 25 basis points overnight but there was no indication of a definite hike when the central bank next meets in September and there is hope inflation can be brought under control without inflicting too much economic damage across the Atlantic.
“Whether the same is true on this side of the pond remains to be seen – with the European Central Bank, and its counterparts at the Bank of England, facing a more stubborn challenge on inflation.
“Shell’s weak second quarter showing reflected a tough comparison with a period in 2022 of surging energy prices linked to Russia’s invasion of Ukraine. The shares lost a little ground on the update.
“Ocado shares slumped as the head of its solutions business – the out-of-a-box online groceries product sold to global supermarkets which is what historically created excitement around the stock – stepped down. Luke Jensen has been the driving force behind this part of the business and there will be concern his exit will undermine Ocado’s efforts on this front.”
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