The FTSE 100 started Wednesday modestly on the back foot after UK inflation figures from which it was difficult to take anything tangible, says AJ Bell investment director Russ Mould.
“With consumption artificially depressed by lockdown there’s not a lot for the data crunchers to work with, though there are some signs that the widely anticipated increase in prices is starting to come through.
“And a surge in US Treasury yields overnight shows inflation is dominating investors’ thoughts as they look for a higher rate for holding ‘safe’ assets like government bonds.
“Another day, another record dividend from the mining sector as Rio Tinto ups its payout. This old world industry is becoming fashionable again given the contribution it is likely to make to producing the metals and minerals required for a new world of renewables and electric vehicles.”
Leave a Comment