FTSE 100 Reside 29 September: Sterling in focus as stagflation fears stalk Uk sector


he stagflation fears at the rear of sterling’s worst session of the yr and the prospect of better desire fees in the US are probable to guide to another nervy session in London these days.

Worries in excess of no matter if the affect of the gas crisis is contributing to an outlook of reduced advancement and mounting selling prices still left the pound at its least expensive position from the US greenback considering the fact that January.

Corporate highlights of today’s session consist of Next’s most current improve to profit direction immediately after it sales functionality in the past 8 months materially exceeded its anticipations.

Dwell updates


Future today provided more proof that it is the very best operate retailer in Britain, upgrading income forecasts for the fourth time this yr as it shrugged off the struggles faced by rivals.

Sales in the very first 50 percent of the 12 months were being up 8.4% and earnings up 5.9% to £347 million in comparison to two many years in the past, pre-pandemic.

Up coming today informed the City that complete 12 months earnings should really strike £800 million, much in advance of former direction of £764 million.

Main government Simon Wolfson mentioned: “We have been astonished how powerful product sales have been in August and September.”


Brent selling price cools

Some of the renewed considerations about inflation have occur from a new spike in electrical power costs, with Brent crude yesterday earlier mentioned $80 a barrel for the to start with time in three yrs on the again of energy shortages in several Chinese provinces.

Brent fell back in the course of yesterday afternoon’s wider market place provide-off and was trading at just under $77 a barrel this morning.

Oanda analyst Jeffrey Halley said: “It’s not just China with vitality concerns, the total Northern hemisphere is now perspiring (or is that chilling), on whether the forthcoming wintertime is mild or cold.”


Sterling in concentration

Sterling held business this early morning at 1.35 towards the US dollar, obtaining fallen 1% to the least expensive position considering the fact that January for the duration of yesterday’s worst session of the year.

The pound’s weakness was blamed on stagflation fears triggered by the gas crisis and as mounting US borrowing charges place upward stress on the dollar.

The 10 12 months Treasury produce rose to 1.537% on anticipations for an before-than-envisioned rise in fascination costs, main to sharp market-off in tech shares whose valuations are designed on long run robust dollars flows.

Wall Street’s tech-centered Nasdaq shut 2.8% lessen, though the S&P 500 was down additional than 2% after huge losses for shares in large-advancement sectors this kind of as semiconductors, media and software package.

There was a identical tale in Europe, where major indices on the continent fell extra than 2%. The FTSE 100 index bucked the pattern and was only .5% lower owing to assistance from greenback-earning shares.

Michael Hewson, CMC Marketplaces analyst, expects European markets to exhibit a modest rebound and for the FTSE 100 index to open up 4 factors higher at 7,032.