Supply chain issues related to the pandemic continued to affect delivery of raw materials, raising prices. Manufacturers, especially in the car and electric device industry, also struggle to keep up with demand due to the global semiconductor chip shortage.

Nevertheless, the blue-chip FTSE 100 index (.FTSE) climbed 0.9%, this morning, led by banks and oil heavyweights.

Homebuilders are also up following data from mortgage lender Nationwide, which showed British house prices in August progressed by 2.1% from July after a 0.6% fall the previous month. House prices in August were 11.0% higher than a year ago, and much higher than the Reuters consensus of 8.6%.

Meanwhile; WH Smith tumbled 7% after it issued a weak full-year guidance.

Yesterday, higher-than-expected inflation in the Eurozone and comments by an ECB official that the central bank should think about tapering drove UK markets lower. The FTSE 100 declined 0.4%. Aluminum hit a 10-year high in London, as demand grows and supply comes under pressure. Prices rose 2.9% to $2,726.50 on the London Metal Exchange, their highest since 2011, further fueling broader inflation concerns.

 

On markets:

Crypto platforms need regulation to survive, says SEC boss (Financial Times)

Tesla and the Metaverse (WSJ)

Europe’s Factory Backlog Hits Record on Global Supply Squeeze (Bloomberg)