Business & Investment

The FTSE 100 has risen 0.9% since Monday fall, but tensions between Russia and Ukraine and concerns about rising interest rates continue.

The FTSE 100 has recovered to some extent after falling yesterday as rising tensions over Russia and Ukraine and the prospect of accelerated Fed rate hikes surprised investors.

The UK Equity Index fell 0.9% by 12:30 pm to 7,360.2 points as the world’s major stock markets also slumped after falling 2.6% on Monday.

Traders buying back to cheaper stocks have sent the stock market upwards today, but investors remain on the knife edge with their concerns exacerbated by the big decline seen in recent major tech growth stocks.

The Nasdaq Index, which has heavy US technology, has been losing streak since November, but the major US indices S & P500 and Dow Jones IA moved to the correction zone yesterday. It has fallen 10% from its recent peak.

London’s leading stock market index, the FTSE 100, has regained some ground today after a sharp 2.6% drop yesterday.

Commodity-related energy stocks are one of today’s risers in FTSE100, including BP and Shell, as concerns over military conflicts combined with risks in the Middle East have raised concerns about the availability of oil supplies and pushed up crude oil futures. was.

Banks such as NatWest, Standard Chartered, Lloyds and Barclays also rose, and higher interest rates were considered to benefit their interests.

The domestically focused FTSE 250 rose 1.5% to 21,776 points.

The FTSE 100 remains about 2.8% lower than last week’s closing as Monday’s selling pushed the index to its lowest in a month.

The city was left upset by a sell-out on Monday as a creepy investor abandoned its shares.

The city was left upset by a sell-out on Monday as a creepy investor abandoned its shares.

Upward: Pearson led the top 20 risers on the FTSE 100 today, but the leaderboard focused on oil, resources and bank equities.

Upward: Pearson led the top 20 risers on the FTSE 100 today, but the leaderboard focused on oil, resources and bank equities.

Yesterday’s sells wiped £ 68 billion from the value of 350 major UK listed companies, but the Dow Jones Industrial Average dropped more than 1,000 points in early trading before it recovered in New York.

Only UK stocks were struck by investor depression yesterday as the U.S. market continued to make a tough start this year, Chinese stocks fell to their 15-month lows and Stocks Europe 600 fell about 3.5%. Not that.

Hargreaves Landsdown Susannah Streeter’s senior investment and market analyst described the recovery in UK equities this morning as “a calm before another potential storm”, targeting Monday’s best-selling name. The profits were brought about by the “bargain hunter” that was made.

She added:

There is growing tension over the Federal Reserve’s efforts to talk and act to curb increasingly troublesome inflation.

“Ukraine’s worsening situation, which continues to standoffs as diplomats slow down, could unleash new fronts of turmoil, including further exacerbating the energy crisis facing Europe. Afraid of increasing market tensions. “

The movement of so-called “safe shelter” assets today shows ongoing investor nastyness.

How Monday's sale affected the European stock market and Bitcoin

How Monday’s sale affected the European stock market and Bitcoin

Eurozone government bond yields have been generally stable on Tuesday, with Germany’s 10-year bunt yield surpassing 0% for the first time since 2019 last week and then returning to a particularly negative territory.

Safe shelter currencies have generally risen this morning, with the US dollar approaching its two-week peak.

Meanwhile, gold prices are stable and the Fed’s accelerating pace of policy tightening is commensurate with the demand for safe haven, supported by heightened tensions on Ukraine.

PIMCO Tiffany Wilding’s U.S. economist said central banks would use Wednesday’s meeting to “repeat recent guidance” and postpone rate hikes until March amid continued inflationary pressures and low unemployment. He said he was expecting.

She added:

“I think it’s a close call on whether to announce the end of asset purchases a month earlier (ie mid-February) than is widely expected (mid-March).

‘At the press conference, the chair [Jerome] Powell could even provide additional details on how authorities prefer to shrink their balance sheets.

FTSE has been suffering over the past week, but has risen significantly compared to a year ago.

FTSE has been suffering over the past week, but has risen significantly compared to a year ago.

But Aaron Anderson, senior vice president of research at Fisher Investments, suggested that the Fed’s next step may not always be negative for the stock market.

He explained:

Many continue to worry that the Fed will curtail its quantitative easing (QE) program and raise interest rates will be a headwind for the market, but the data show that tapering and raising initial interest rates are essential for equities. It shows that it is not negative.

“Quantitative easing is widely misunderstood and, as many believe, we believe it does not stimulate the economy or encourage inflation.

“In our view, strong fundamentals and expectations of a recovery in economic activity rather than monetary policy have helped the stock market rise since March 2020.”

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The FTSE 100 has risen 0.9% since Monday fall, but tensions between Russia and Ukraine and concerns about rising interest rates continue.

https://www.dailymail.co.uk/money/markets/article-10439019/FTSE-recovers-ground-Mondays-market-rout-fears-persist.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 The FTSE 100 has risen 0.9% since Monday fall, but tensions between Russia and Ukraine and concerns about rising interest rates continue.

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