European equity markets kicked off the new week with a mixed performance. The FTSE 100 moved 0.3% higher while the Dax initially fared even better with a 0.8% gain although most of those gains quickly faded away. The joy was not shared in parts of Asia where the BSE Sensex slumped 2% and the Nikkei 225% fell 0.7%.
Russ Mould, investment director at AJ Bell, said: “There are plenty of reasons for investors to be cautious. Strong US jobs data last week might suggest the Fed pushes up rates faster and harder than currently expected. Ongoing tensions between Ukraine and Moscow also hang over markets like clouds waiting to unleash a fury of rain.
“The reaction to corporate earnings in the US has been somewhat volatile with extreme movements either up or down. Labour cost pressures remain a worry, and inflationary pressures are certainly darkening the outlook for both consumer and business spending.
“On the UK market, miners were in demand as an ongoing inflationary environment should be positive for metal prices.”