Spreadex Market Update

Another uneasy day for the FTSE while the rest of Europe sees gains



The FTSE is currently down -0.13% and has been trading similarly throughout the day. It comes as inflation and COVID-19 cases still weigh on the minds of investors.

Andrew Bailey, head of the Bank of England, says he is “very uneasy about the inflation situation”, only increasing pressure for the BoE to put interest rates up as soon as possible.

After this, many will be expecting the interest rates to go up in December, but some believe it is unlikely to have that much of a detrimental effect on UK markets, as the decision would almost be an inevitability and therefore already factored into the current price.

Another big factor weighing on the FTSE today is the miners, after continued pressure from the COP26 statement, which announced a “phasing down” of coal.

Furthermore, across Europe, there has been further worry with rising COVID cases, that restrictions could come back into place even as soon as the Christmas holidays.

Despite this, both the DAX (0.34%) and the CAC (+0.40%) managed solid positive gains.

It may have been rescued by the European Central Bank stating that an interest rate hike is unlikely in 2022.

Investors will be keeping a keen eye on Unemployment data set to be released tomorrow morning alongside GDP data for the EU.

US markets seem to be doing well again today, thanks to upbeat economic data coming out of China this morning.

The DOW (+0.31) also being boosted by Boeing, after the head of commercial aeroplanes explained he was “hopeful” that China would begin purchasing their 737 Max’s, after a nearly 2 year hiatus.

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