Putin’s intervention in the gas market and a short-term deal on the US debt ceiling seem to have calmed the nerves of traders after yesterday’s wild session.
The FTSE 100 index rose 1%, helped by natural gas futures easing to 227p per therm from the 400p seen yesterday when investors were spooked by inflation fears and the prospect of a rising interest rates sooner than expected.
House prices, meanwhile, remain on an upward trajectory after Halifax reported a new record monthly average figure of £ 267,587 as the space race continues.
NatWest faces huge money laundering fine
NATWEST pleaded guilty today to three money laundering accounts and can expect a huge fine from watchdogs keen to crack down on crime.
The bank, formerly Royal Bank of Scotland, admitted it failed to comply with the rules over a four-year period between November 2012 and June 2016.
It’s a blow to Alison Rose, the new CEO who is trying to reinvent the bank that went bankrupt under the leadership of Fred “The Shred” Goodwin and had to be bailed out by the taxpayer.
Risk appetite returns
Clouds rose for the stock markets today after US politicians heeded warnings of a “catastrophic outcome” if they failed to raise the country’s debt ceiling on time.
Senate Leader Mitch McConnell’s decision to offer an increase in the short-term debt limit to avoid a national default has brought some relief to Wall Street, though the truce does little more than delay the question until December.
Treasury Secretary Janet Yellen had earlier warned that their failure to agree on an extension would likely trigger a recession, putting additional pressure on sentiment at a time of growing global nervousness over the outlook for inflation and interest rate.
The S&P 500 and the Nasdaq closed almost 0.5% higher, encouraging bargain hunters to return to the London market after Vladimir Putin’s intervention in the gas market.
The FTSE 100 index rose over 1% at one point and then rose 51.94 points to 7,047.81 following gains of over 3% for miners including Anglo American.
The all-important report on Tomorrow’s Jobs in the United States means the respite may not last long, as a strong figure will be seen as the go-ahead from the Federal Reserve to begin plans to curtail economic stimulus.
A particularly small number has the potential to fuel stagflation fears through the toxic combination of rising prices and weak growth.
Packaging and paper giant Mondi, listed on the FTSE 100, revealed that its input costs were significantly higher in the September quarter, but had so far been successful in passing on those overheads related to energy, resin, transport and chemicals.
Shares rose 19p to 1,807p after Mondi allayed fears that demand for its products would be affected. Packaging company Smurfit Kappa also increased from 88p to 3850p.
The FTSE 250 index improved 95.22 points to 22,481.84, with the owner of British Gas Centrica among these up 2%. Rising gasoline prices don’t seem to have hurt it, as stocks have now risen 18% in the past month as smaller rivals fall apart.
On AIM, Victorian Plumbing fell further from the early June price of 262p after the bathroom products company said revenue growth moderated over the summer. Stocks fell 19p to 221p, although annual profits are above market expectations.
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The hotel sector was able to reopen in July.
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Workspace sees SMEs flock to London offices
SMEs are leading the way back to the office, said the boss of owner Workspace, reporting a resumption of rentals and building use.
Graham Clemett said “there are positive signs of momentum,” with more than 1,000 inquiries, 633 visits and 175 rentals agreed on his sites last month. He added that it was better than what had been seen before the pandemic.
The company, which has offices at 60 locations in London, offers flexible leases, typically for two years with exit options after six months, and the ability to occupy additional space if needed. It is appreciated by start-ups and SMEs.
Read the full story here.
Debt deal raises FTSE 100
The FTSE 100 index opened more than 1% higher at around 7,070.
Richard Hunter, Head of Markets at Interactive Investor, said: “Risk appetite has briefly returned for investors, although sentiment remains delicately balanced.”
The mood was helped by progress in debt ceiling negotiations in the United States after Senate Leader Mitch McConnell proposed an increase in the short-term debt ceiling to avoid a national default .
London-listed mining stocks benefited from improving sentiment, with Anglo American stocks up 3% and Glencore up 2%.
Gas prices hit their record high yesterday after Russia announced it was ready to increase supplies to help Europe avoid an energy crisis.
But with gas futures still remaining at high levels, there’s a good chance households will see their cost of living rise significantly this winter, as businesses pass on much higher overhead costs.
British Bank of America economist Robert Wood now expects CPI inflation measure to peak in April at 5.1%, as well as 5.8% for the RPI benchmark, which is still used to set train fares and student loan rates.
Its note released yesterday predicts a 45% hike in Ofgem’s price cap in April, rather than previous expectations of a 25% hike.
UK property prices soar as ‘space race’ continues
Halifax said average prices in September hit a record £ 267,587, up 1.7% month-on-month and 7.4% higher than the same period last year.
Russell Galley, managing director of the mortgage lender, said: “This monthly growth rate was the highest since February 2007.”
Read the full story here.
Even Bitcoin was overshadowed by the dramatic volatility in gas prices yesterday, with the cryptocurrency rising a relatively modest 7% to exceed $ 55,000 yesterday.
It continues to trade near that level this morning, after receiving more institutional approval yesterday when billionaire George Soros’ investment firm said it owned coins.
Bitcoin is now at its highest level in five months after rising 27% in that month.
Stable gas prices
The London market is set for a quieter session after yesterday’s intervention by Russian President Vladimir Putin helped catch soaring natural gas prices.
Gas futures for November delivery climbed above 400p per therm at some point yesterday, fueling inflation fears and pushing the FTSE 100 index down 1%. The gas figure is now back at 266p, while Brent crude has eased slightly to just over $ 80 a barrel.
Hopes of a compromise on the US debt ceiling also bolster sentiment after Wall Street reversed losses to end in positive territory, with the S&P 500 and the Nasdaq both nearly 0.5% higher.
The prospect of tomorrow’s US jobs report means that the uncertainty has not gone away, however, as a strong figure will be seen as the green light for the Federal Reserve to begin its stimulus reduction plans. economic.
A particularly low number has the potential to fuel fears of stagflation, which is the toxic combination of rising prices and weak growth.
After yesterday’s crazy session, the FTSE 100 index is expected to open around 60 points higher at 7055.