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FTSE has mild hangover after hot US inflation

by LLB Reporter
15th Feb 23 9:38 am

After a US inflation number which proved a mild disappointment to the market, price rises easing a little less than hoped, the UK’s own inflation reading came in lower than expected.

AJ Bell investment director Russ Mould said: “The US data caused a mild hangover for the FTSE 100 on Wednesday after a sluggish performance on Wall Street and weakness in Asia overnight.

“Investors are trying to work out how the US Federal Reserve might react as they desperately look towards the milestone of the final rate hike in this cycle. For now, markets are retaining some confidence that this pivot isn’t too far away.

“The divergence in inflation figures, relative to expectations, on either side of the Atlantic did result in weakness for the pound. This in turn helped provide support to the FTSE 100 by boosting the relative value of its dominant overseas earnings.

“US retail sales figures will be closely watched later. The US is a nation of shoppers and this is the main gauge of consumer spending which accounts for most of the economic activity in the world’s largest economy.”

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