The latest from London: FTSE 100 retreats from 2-year high

London's FTSE 100 reached a two-year high yesterday after CPI data in the US was in line with expectations of a 7% rise in December. Markets were still buoyed by reassuring comments from Fed chair Jerome Powell. Miners outperformed as commodity prices grew.

The blue-chip index inched down 0.1% this morning, as a high pound hit exporters such as Diageo and Unilever.

Retailers Tesco and Marks & Spencer dropped 1.8% and 4.9% respectively, despite raising their profit guidance after strong Christmas sales, but this was not enough to satisfy markets.

Online fashion retailer ASOS jumped 7.6% after announcing plans to move to London Stock Exchange's main market.

 

Things to read today:

Fed Says Economic Optimism Showing Signs of Cooling in Places (Bloomberg)

Fed’s Bullard: Four Interest Rate Rises in 2022 Now Appear Likely (WSJ)