FTSE struggles for direction as UK borrowing figures lower than forecast

The FTSE 100 was struggling for direction like a drunkard in a blindfold on Tuesday morning, not unfairly given the continuing uncertainties over vaccines versus variants, the risks of inflation and the continuing volatility in the commodity and cryptocurrency markets.

A relatively resilient jobs market has helped Government borrowing come in a little lower than expected for April. The question longer term is if this means tax increases and spending cuts can be eased slightly from the current projections.

“Shares in guarantor lender Amigo Loans had a horror show of a day after the company’s plan to cap customer compensation were struck out by the High Court, raising yet more questions over the future of the business,” says AJ Bell investment director Russ Mould.

“London’s West End property investor Shaftesbury laid bare the devastating impact of the pandemic on the area as it collected just half the rent due in the year to March – although there are signs of some green shoots since the big reopening on 12 April.”