The latest from London: The FTSE 100 struggles for direction

01/20/2022 | 04:46am

The LSE bounced back yesterday, helped by miners and the People's Bank of China easing monetary policy. Strong results from luxury stocks also boosted the FTSE 100, with Burberry posting higher sales and guiding for 35% earnings growth this year.

However, the FTSE 100 struggles for direction today, going up and down, as investors still fear the consequences of a tightening of the Fed’s monetary policy. Wall Street ended in the red overnight, with the Nasdaq now more than 10% below its late November peak.

In addition, worries about the situation in Ukraine worsened after U.S. President Joe Biden said he believes Russia intends to "move in" on Ukraine.

However, there was a bit of good news when China's central bank took another step towards a more accommodating policy on Thursday. To counter a slowing economic recovery, the institution lowered one of its benchmark interest rates.

In other news, Unilever rose 1.5% after it officially dropped its plan to acquire GSK's healthcare business, while Associated British Foods fell 1% after it said the spread of Omicron impacted shopper numbers in December.

 

Things to read today:

China cuts mortgage lending rate for first time in two years (Financial Times)

Nasdaq Falls More than 1%, Entering Correction Territory (WSJ)

The UK is Two Months Away From a Brutal Cost-of-Living Crisis (Bloomberg)

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