CLOSING UPDATE – London’s FTSE 100 closed down 0.45% and the FTSE 250 closed down 1.31%, as traders braced for big news from the U.S.
Traders were braced for big news from the U.S. including retail sales, inflation figures and the minutes of the latest Fed meeting in America, which could offer crucial hints about how the U.S. central bank handles inflation.
Craig Erlam, senior market analyst at Forex group Oanda said, “We’re seeing mild risk aversion in the markets at the start of the week, perhaps some apprehension ahead of what could be a big few days for the US.
MORNING UPDATE – The FTSE 100 closed down 0.08% and the FTSE 250 was 1.24% lower, amid continued investor worries over rate rises, inflation and Kwasi Kwarteng’s ‘mini budget’.
Company insolvencies in Britain have hit a 13-year high, according to the Office for National Statistics, with many insolvencies due to rising energy prices.
There were more than 5,600 insolvencies in England and Wales in the second quarter of 2022, the ONS said.
Construction, retail and accommodation were particularly hard-hit.
The Bank of England’s deputy governor Dave Ramsden said in a speech this week that despite consumer pain, the Bank’s Monetary Policy Committee must “stay the course” on interest rate rises.
Ramsden said, “The central question for all nine of us on the MPC is how forceful do we need to be,.
However difficult the consequences for the economy might be, the MPC must stay the course and set monetary policy to return inflation to achieve the 2 per cent target.”
Iconic British pub chain JD Wetherspoons (GB:JDW) bounced back somewhat from its recent woes with shares rising 17% as the low-cost pub operator reported a promising rise in like-for-like sales.
British business news today
Central banks are risking the best jobs market in a generation (FT)
Race to defuse time bombs lurking in financial sector (Telegraph)
Time to stock up on candles, I fear (Daily Mail)