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FTSE higher after bumper US gains

by LLB Reporter
11th Nov 22 10:29 am

The FTSE 100 consolidated its gains from the day before as US stocks surged overnight on Thursday’s lower-than-expected inflation reading

AJ Bell investment director Russ Mould said:  “For once talk of a pivot by the Federal Reserve might be more than just hot air, with the easing of inflationary pressures accompanied by signals from some Fed officials they might be prepared to ease up on rate hikes.

“Adding to the positive sentiment was further evidence of a softening in China’s zero Covid position, helping the miners to gains on the UK market this morning.

“To the surprise of precisely no-one who has been paying attention, GDP figures for the three months to the end of September show the UK economy contracted by 0.2%.

“Expectation will now build that the UK will have achieved the unwanted technical definition of recession, with a second consecutive quarterly period of negative growth, by the end of the year.

“The market has largely priced in such a prospect and the domestic-facing FTSE 250 index traded higher today despite the economic turmoil.

“Though the news doesn’t make balancing the books any easier for Chancellor Jeremy Hunt ahead of his Autumn Statement given the implied drop in tax revenue.”

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