At times it has felt like UK stocks have been performing a high wire act this week as they continued to make progress despite myriad worries facing investors.
“On Friday they fell off the wire as the FTSE 100 started October down more than 1%. This followed a weak session on Wall Street overnight and new factory data from Asia which only added to concern that economic growth is slowing,” says AJ Bell investment director Russ Mould.
“In the UK there has been an alarming drop in business confidence in the space of a month with the optimism engendered by the vaccine roll-out feeling like a distant memory amid a fuel, supply chain and cost of living crisis.
“Markets must hope that the current shortage of everything from energy and skilled staff to shipping containers and raw materials eases before stagflation becomes too entrenched and/or central banks are forced into drastic action to tackle rising prices.”
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