After yesterday’s big rally there was a more sober start for the FTSE 100 this morning as the EU moved closer to a deal to cap the price of Russian oil
Oil prices held on to previous gains as OPEC prepares to unveil an expected production cut. There will be a lot of attention on just how big this cut is – speculation they could be double the volume previously flagged at two million barrels per day has been behind the recent surge in crude.
AJ Bell investment director, Russ Mould, said, “While the cartel is looking to protect itself from a downward swing in demand as major economies face up to the prospect of recession, the move will only add to inflationary pressures and could make any downturn deeper.
“The strength in stocks over the last 24 hours followed a surprise from Australia where the central bank slowed rate hikes and data showing the US jobs market had cooled, potentially leading the Federal Reserve to soften its own hawkish stance on rates.
“The fall in the dollar was notable and given a strong dollar is usually bad news for stocks, markets will be watching closely to see if the 4% slide since hitting two-decade highs last week will be extended.”