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FTSE lower as inflation clouds gather

by LLB Reporter
13th Jan 22 10:50 am

The FTSE 100 started Thursday a touch lower as investors turned their nose up at some mildly positive updates from the likes of Tesco, Marks & Spencer and Persimmon,” says AJ Bell investment director Russ Mould.

The markets had a reminder of inflationary pressures yesterday afternoon as US inflation figures hit a 40-year high.

“This is clouding the outlook for many businesses. For Marks & Spencer it looks like it has been better to travel than arrive, with a really strong run for the shares brought to an end despite strong festive trading,” said AJ Bell’s Russ Mould.

“The retail sector, so far at least, seems to have done well despite Omicron, although the likes of Marks & Spencer and the supermarkets are potential beneficiaries of the fact that, with Christmas parties cancelled, more of us were entertaining at home and treating ourselves to extras like sparkling wine and posh snacks.

“Despite Marks’ soggy share price, it’s still significant that its clothing and home business, long the ugly duckling of the group, is continuing to spread its wings having delivered growth for the second successive quarter.

“Perhaps there is some disappointment that the company hasn’t served up another big upgrade today – though in fairness full-year guidance had been hiked twice already.”

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