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FTSE fights to sustain momentum

by LLB Reporter
8th Jul 22 9:46 am

It’s been a chaotic week for politics and a rollercoaster ride for investors as markets experienced yet more wild swings.

“The FTSE 100 is trying its very best to hold on to this week’s winning streak, but it looks touch and go as to whether the index will have the stamina to stay higher for the whole of Friday.

Russ Mould, investment director at AJ Bell, said: “Investors continue to lock on to oil stocks, with BP, Shell and Harbour Energy among the top risers. JD Sports also got a lift as it found a new chairman.

“Housebuilders didn’t fare as well, with Taylor Wimpey and Persimmon taking a knock amid mixed messages about the sector which is battling materials, energy and labour cost inflation. There is also a growing sense that the property market can’t sustain its positive momentum if we get a recession.

“The US banking season kicks off next week and investors will be looking at deal flows for corporate banks and evidence of bad debts among consumer customers. While banks normally benefit from a rising interest rate environment, as that provides an opportunity to increase earnings by charging more for lending, the market typically worries about the sector if recession strikes.”

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