Ahead of US inflation numbers on Thursday, markets were relatively upbeat with a good showing on Wall Street last night which spilled over into a positive sentiment among investors in European stocks.
AJ Bell investment director Russ Mould said: “It helped that a speech by Federal Reserve chair Jerome Powell yesterday didn’t contain any shocks which would cause investors to worry about markets even more.
“The FTSE 100 moved 0.3% higher to 7,714, driven by strength in miners and banks and despite a big sell-off in the insurance sector following Direct Line’s nasty profit warning which then spooked investors in Admiral. JD Sports’ upbeat trading statement helped to drive renewed interest in the retail sector and extended a trend that gathered pace last week when Next said it had experienced a good Christmas.
“Next and B&M enjoyed share price gains, while investors bid up shares in mid-caps Currys, Marks & Spencer and ASOS.
“Among smaller companies, publisher Reach dived 25% after experiencing a big downturn in advertising. This would suggest companies are being very cautious with their promotional spending amid uncertain economic conditions. For Reach it means the need to find more ways to cut costs.”
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