FTSE 100 higher amid US interest rate focus, travel stocks recover in FTSE 250
European markets are higher at the start of an important week for economic announcements on both sides of the Atlantic.
The US Federal Reserve is expected to pause its rate hike on Wednesday so it can check the temperature of the slowing US economy. A final rally is still expected in July, though much will depend on the strength of US inflation numbers to be released tomorrow afternoon.
The May CPI is forecast to fall to 4.1% from 4.9% previously, but with core inflation excluding food and energy likely to be more stable at 5.3 %.
Hopes that the fastest monetary tightening in 40 years is coming to an end has helped the S&P 500 enter bull market territory, fueled by a select group of large-cap stocks.
European markets have refused to follow Wall Street’s lead, with the FTSE 100 index little changed this year as lower commodity prices weigh on the resources sector.
Rio Tinto, BP and Anglo American are all under pressure today as risk appetite continues to be constrained by the outlook on Thursday’s European Central Bank rate decision and various updates from the background. UK economy.
Unlike the Fed, the ECB is set to raise rates by a quarter point with a next move on the card in July.
Despite the latest commodity weakness, London’s top flight rose 0.3% or 24.94 points to 7587.30 as buyers focused on North American stocks.
These include credit-checking company Experian, which jumped 68p to 2936p, and sports betting business FanDuel Flutter Entertainment with a boost from 150p to 15,390p.
Buyers have returned to grocery warehouse technology company Ocado, which has continued its recovery over the past week by adding 26.3p to 412.9p. Croda International, the specialty chemicals business, also fell 2% or 150p to 5424p after a profit warning sent shares down 16% on Friday.
The FTSE 250 index rose 0.4% or 75.06 points to 19,166.72, led by the travel sector after Wizz Air, Carnival and TUI rose more than 2%.