Having tripped over on Monday afternoon amid concern about China lockdowns and the conflict in Ukraine the FTSE 100 sprang back to its feet on Tuesday on hopes the latest round of peace talks between Moscow and Kyiv might yield tangible progress.
Suggestions the Russian side are softening some of their previous demands raised spirits, but the market is unlikely to take anything for granted when it comes to the machinations of Vladimir Putin.
“The resilience of global stocks given the cocktail of risks facing the global economy is truly impressive but this stoicism is likely to face continuing tests as the impact of mounting prices and the actions of central banks continue to feed through, not to mention the ongoing geopolitical concerns,” says AJ Bell investment director Russ Mould.
“The FTSE 100 has proved to be better placed than most thanks to relatively cheap valuations, strong income credentials and exposure to surging commodity markets, however it is not immune to the current pressures.
“The next big economic announcement to watch is the US jobs release on Friday which may have some impact on expectations around the pace of rate hikes in the world’s largest economy.
“It appears that, in contrast with some other luxury goods firms, posh handbags seller Mulberry doesn’t have a huge number of Russian customers as it lifts guidance thanks to robust sales. The company is putting a strong balance sheet to good use by investing in marketing to boost awareness of the brand globally.
“This is exactly what companies should be doing, namely investing in the business for future growth.”