Yesterday, defensive sectors were the biggest performers, highlighting ongoing growth fears. Energy stocks were hit hardest. At the end of the session, the FTSE100 fell 0.2%.
A central bank has already hinted at an earlier-than-expected rate hike. Australia officially abandoned its 0.1% target for three-year debt. It also removed forecasts for rates to stay put until 2024.
After Australia and the U.S., the Bank of England is expected to release a statement on its monetary policy on Thursday, and most commentators expect a rate hike.
High prices are sticking, with inflation not as “temporary” as initially thought by the Fed. South Korean price growth accelerated to a ten-year high. The impact of high prices could also be felt in Monday’s ISM survey about U.S. manufacturing in October.
Clothing retailer Next is down 2.8% after it warned that sales growth was slowing, while cybersecurity firm Darktrace tumbled 4.8% after the announcement that British private-equity firm Vitruvian Partners sold around 11 million shares in the company.
Things to read:
Coal Miners profit from energy market turmoil (Financial Times)
Financial System Makes Big Promises on Climate Change at COP26 (WSJ)
Stagflation is coming: central banks and governments are right to be terrified (Daily Telegraph)