The FTSE 100 finished up by 0.88% at 7,361.6 while the FTSE 250 was up by 0.11% at 19.149.6 after a mixed day where both indices had been buoyed by an early rally driven by gains in oil and banking stocks – only to slump later as the Dow Jones Industrial Average, S&P 500 and the Nasdaq fell on news that the Estonian central bank governor Madis Muller had discussed a possible 75 point basis rate hike next Month.
AJ Bell investment director, Russ Mould, said “The FTSE 100 started on the front foot after the Bank Holiday, having careered into the long weekend with some substantial losses after Federal Reserve chair Jerome Powell’s hawkish speech at the Jackson Hole summit.”
Meanwhile, more worrying signs about the state of Britain’s economy emerged as credit card borrowing grew at the fastest annual rate for 17 years, with consumers borrowing an additional £1.4 billion in July.
British energy firms including gas producers and electricity generators could make excess profits of up to £170 billion over the next two years, a controversial report has claimed.
Bloomberg News reported the futures on Tuesday, based on unpublished analysis, but this is disputed by Britain’s government.
Fund manager Abrdn (GB:ABDN) may well be relegated from the FTSE 100 this week for the first time since the 2017 merger of Standard Life and Aberdeen Asset Management, after a more than 40% slump in its share price.
Iconic British food retailer Marks and Spencers (GB:MKS) rose 2% on news that it was placed second in a NIelsenIQ list of food retailers, based on sales momentum over the past three months.
British business news
Sunak warns of risk that investors could lose faith in British economy (FT)
Get ready for 22% inflation, Goldman warns (The Times)
Why rising energy prices will kill the work-from-home dream (Telegraph)
