Mixed feelings

It’s the usual confusion among investors, after the publication of good US economic data. Although it shows that the economy is holding up well against rate hikes, and a soft landing is possible, this also means that the Fed could be raising rates for longer to control inflation.

The US reported stronger than expected ISM services data yesterday, which came in at 56.5 in November, vs expectations of 53.5. The FTSE 100 was down 0.1% this morning,

Meanwhile, growth in Britain's construction industry slowed in November, hampered by higher rates and borrowing costs, while the difficult economic environment limited new building works. The S&P Global PMI index for construction fell to 50.4, versus expectations of 52.0.

Among stocks, Ashtead Group gained 3.9% after it raised its interim dividend by 20%.

Defensive stocks and oil majors stocks were among the largest declines.

 

Things to read today:

SPACs Collapse as $11 Billion of Deals Are Called Off Within an Hour (Bloomberg)

Crypto group Circle ends $9bn deal to go public through Bob Diamond’s Spac (Financial Times)

Stocks Slide After Strong Data on Factory, Services Sector (WSJ)