FTSE gets post-Jubilee bounce

Many of us might be nursing a bit of a hangover but the FTSE 100 got a post-Jubilee bounce on Monday morning.

Appropriately following a platinum-themed celebration, the move higher was powered by the mining sector as investors look for a rebound in demand for metals now China is relaxing its Covid restrictions.

While trading was closed in London at the end of last week, US stocks endured a seesaw couple of days but ultimately ended up in positive territory for the period.

In the current through the looking glass environment the apparent ‘good’ news of better-than-expected US jobs numbers was taken badly by the market as it was seen as a potential catalyst for the US Federal Reserve to go harder and faster on interest rates. It showed just how nervy sentiment remains despite a recent stabilisation in the markets.

“Later this week the European Central Bank (ECB) will meet to decide on monetary policy for the Eurozone. The ECB is running behind its counterparts in the UK and US in terms of raising rates to combat the inflationary threat, but given how fragile things are economically, the central bank’s chief, Christine Lagarde, has a testing tightrope to walk,” AJ Bell investment director Russ Mould said.

“There may be renewed market volatility at the end of this week with the release of US inflation numbers. Signs that prices are starting to ease could prompt another wave of stocks and shares purchases as investors anticipate a more relaxed position from the Fed. However, a higher-than-expected inflation number could create significant jitters on both sides of the Atlantic.

“Mattress seller Eve Sleep has had anything but a soft landing since listing in London in 2017. The company has given its shareholders plenty of sleepless nights and after its latest item of bad news – missing revenue forecasts – the company is giving up the ghost and putting itself up for sale.”