Despite some weakness in Asian markets overnight, the FTSE 100 starts the last week before Christmas with a sprinkling of cheer as it looks to recover last week’s losses.
AJ Bell investment director Russ Mould said: “Fluctuations in gas prices as the EU discusses a price cap is a reminder that one of the key factors behind the inflationary pressures which have had such a big impact on markets and economies in 2022 has not gone away.
“What investors are wrestling with now is just how much economic pain central banks are willing to inflict with rate rises to drag inflation back to targeted levels.
“US releases on consumer confidence on Wednesday and core inflation on Friday look the only scheduled announcements likely to shift the market’s mood this week but after an unpredictable year it would be foolish to rule out one last big surprise before 2022 is out.”
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