A strong end to the week helped to lift investors’ spirits, with the FTSE 100 up 0.8% to 6,731, Japan’s Nikkei 225 rising 1.6% and pre-market indicative prices suggesting the core US markets will open 0.4% higher. The key issue is how long markets remain upbeat, says Russ Mould, investment director at AJ Bell.
“Miners and oil producers drove the FTSE higher despite growing concerns about parts of the world failing to get Covid under control and what that might mean for economic recovery.
“Front of mind for the market is the matter of the Suez Canal being blocked, potentially for many more days. What’s important is how that might affect global trade and the fact it is already causing shipping rates to rise, which in turn could fuel inflation as extra costs are passed on to the consumer.
“This all suggests we remain at a fragile point for markets and one that could lead to heightened volatility.”
Leave a Comment