• Sat. Oct 29th, 2022

AJ Bell investment director Russ Mould responds to growing inflation concerns today, as the FTSE remains down 2pc, trading at around 6,971 points.

May 11, 2021

Good morning. The FTSE 100 is tipped to follow Asian and US markets by opening sharply lower this morning.
The benchmark index fell yesterday after the pound jumped following the results of last week’s local elections.
5 things to start your day 
1) SoftBank gives Hut Group £1.6bn boost: Boss Matt Moulding said fresh funds would allow him to ‘invest aggressively’ and unlock partnerships with other Softbank firms globally.
2) Doorstep lending reaches end of the road as Provident Financial pulls plug: The decision to walk away from the sector after 140 years collecting debts is part of a plan to become a “broader banking group”.
3) Formula 1 design legend Gordon Murray reveals £250m expansion: The money will in part be used to create a division focused on design and engineering for environmentally friendly electric vehicles.
4) Plans for Scotland’s first power station that captures carbon revealed: The gas-fired power station at Peterhead, Aberdeenshire, could capture up to 1.5m tonnes of carbon dioxide from its emissions each year.
5) Branson’s Virgin Galactic faces new space flight delay: The firm is currently re-evaluating launch timing for its next test flight after discovering a possible wear and tear issue.
What happened overnight 
Shares dropped in Asia on Tuesday after selling of several Big Tech companies pulled US benchmarks lower.
Japan’s Nikkei 225 sank 2.8pc and Hong Kong lost 2.4pc early on Tuesday.
Despite reassurances from the Federal Reserve and a much weaker than expected US jobs reading last week, investors have refocused on the potential for surging prices to pressure central banks into tapering off on their massive stimulus and ultra-low interest rates, analysts said.
Markets are watching for US and Chinese consumer and producer prices due out this week.
Tokyo’s Nikkei 225 slipped to 28,705.95 while the Hang Seng in Hong Kong was at 27,928.11. The Shanghai Composite index shed 0.3pc to 3,417.80. In Seoul, the Kospi dropped 1.3pc to 3,206.80.
Coming up today
Corporate: Morrisons (Trading statement)
Economics: Consumer and producer price index (China), economic sentiment (EU)