In addition, Bank of England policymakers are due to speak later today, with investors expecting that they will announce a rate hike before the end of the year. Last night, Singapore's central bank took everybody by surprise by tightened monetary policy due to higher inflation.
The only reassuring news is that China released slightly lower inflation data today. September monthly inflation was down to 0.0%, against forecasts of 0.30%. Annual inflation dipped to 0.70% from 0.80%. However, the September Consumer Price Index (CPI) rose to a record 10.70%.
The picture looks clearer and clearer, central banks are about to respond to higher inflation….
In this context, the FTSE 100 rose by 0.7% this morning, as it seems that investors have already priced in a hawkish move from central banks. Oil and mining stocks are still the top performing shares.
Among stocks, Dunelm Group improved 3.8% after posting a strong rise in sales. Meanwhile, Ashmore Group fell 2%, caused by a $3.1 billion drop in assets under management in the third quarter.
Things to read:
The supply chain crisis and US ports: ‘Disruption on top of disruption (Financial Times)