Home Business NewsBusiness FTSE 100 slips back below 8,000 after weak Asian trading

FTSE 100 slips back below 8,000 after weak Asian trading

by LLB Editor
21st Feb 23 10:15 am

The FTSE 100 dipped back below 8,000 after weak trading in Asia and amid a lack of direction from the US yesterday where markets were closed for the Presidents’ Day holiday.

AJ Bell investment director Russ Mould said: “The market feels like it is in a holding pattern right now as investors await the next meeting of the US Federal Reserve in a month’s time. Hints a 50 basis-point rate hike could be in the offing have helped sour sentiment a little but confirmation could really undermine investor confidence.

“In the meantime, a great guessing game is likely to take place with the Fed minutes, updated US GDP figures for the fourth quarter and core inflation data all providing some clues on the likely trajectory of interest rate policy later this week.

“Asian exchanges were unsteady for the most part amid the weakest PMI reading from Japan’s manufacturing sector in more than two years – hinting at the same pressures on consumer spending and impact of raw material costs as seen in the West.

“An unexpected surplus provides a boost to Chancellor Jeremy Hunt ahead of his Budget next month – perhaps allowing him to be a little more Santa than Scrooge when he unveils his tax and spending plans.”

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