FTSE recovers ground after Monday's market rout but fears persist

富时 100 [object Window] 0.9% as shares recover some ground after Monday’s market rout but Ukraine tensions and Fed rate hike weigh on investors

  • 富时 100 gains after falling to a one-month low on Monday in global sell-off
  • ‘Bargain huntersand crude futures drive blue chip index’s recovery
  • US markets fell into correction territory yesterday – 下 10% from recent peak
  • 富时 100 recovered some ground after tumbling yesterday, as escalating tensions over Russia and Ukraine and the prospect of faster US Federal Reserve interest rate hikes spooked investors.

    Britain’s blue-chip index added 0.9 per cent by 12.30pm to 7,360.2 积分, after taking a pounding on Monday when it fell 2.6 百分, as major stock markets around the world also slumped.

    Traders buying back into cheaper shares sent the stock market up today, but investors remain on a knife edge with their concerns exacerbated by major falls seen in leading tech growth shares recently.

    The US’s technology heavy Nasdaq index has been on a losing streak since November, while the main American indices, S&P 500 and Dow Jones IA moved into correction territory yesterday – 下 10 per cent on recent peaks.

    富时 100, London's leading stock market index, regained some ground today after yesterday's sharp 2.6% 约翰霍普金斯大学教授抨击他的大学和媒体对 COVID 研究, which itself followed a week-long losing streak

    富时 100, London’s leading stock market index, regained some ground today after yesterday’s sharp 2.6% 约翰霍普金斯大学教授抨击他的大学和媒体对 COVID 研究, which itself followed a week-long losing streak

    Commodity-linked energy stocks were among the FTSE 100 gainers today, including BP and Shell, as fears of a military conflict, coupled with risks in the Middle East, have raised concerns about oil supply availability and pushed crude futures higher.

    Banks, including NatWest, Standard Chartered, Lloyds and Barclays, also climbed, with higher interest rates considered to be beneficial to their profits.

    The domestically-focused FTSE 250 rallied 1.5 %到 21,776 积分.

    富时 100 remains around 2.8 per cent lower than its closing price last week, as Monday’s sell-off pushed the index to a one-month low.

    The City was left reeling by Monday's sell-off, as spooked investors ditched shares

    The City was left reeling by Monday’s sell-off, as spooked investors ditched shares

    On the up: 顶端 20 risers on the FTSE 100 today was led by Pearson, but the leaderboard was heavy on oil, resources and bank stocks

    On the up: 顶端 20 risers on the FTSE 100 today was led by Pearson, but the leaderboard was heavy on oil, resources and bank stocks

    Yesterday’s sell-off wiped £68billion off the value of Britain’s 350 leading listed com-panies, while the Dow Jones Industrial Average shed more than 1,000 points in early trading before recovering in New York.

    UK stocks were not alone in feeling the brunt of investor skittishness yesterday, as US markets continued their tough start to the year, Chinese shares fell to a 15-month low and the STOXX Europe 600 fell roughly 3.5 百分.

    Senior investment and markets analyst at Hargreaves Lansdown Susannah Streeter described this morning’s recovery in UK stocks as ‘a calm before another potential storm’, with gains driven by ‘bargain hunters’ targeting Monday’s most-sold names.

    她补充说: ‘Investors are still bracing for a fresh bout of volatility this week, following the rollercoaster ride on Wall Street and fresh falls in Asia.

    ‘A heightened sense of nervousness remains about just how tough the Federal Reserve will talk and act to try and get increasingly troublesome inflation under control.

    ‘The deteriorating situation in Ukraine with the stand-off continuing as diplomats moves falter, is adding to heightened tensions on the markets, with fears a conflict could unleash a fresh front of chaos, including making the energy crisis facing Europe even worse.’

    Movements in so-called ‘safe haven’ assets today illustrate ongoing investor skittishness.

    How Monday's sell-off hit Europe's stock markets and bitcoin

    How Monday’s sell-off hit Europe’s stock markets and bitcoin

    Government bond yields in the euro area broadly steadied on Tuesday, with German 10-year Bunt yields notably edging back into negative territory after rising to above 0 per cent for the first time since 2019 上个星期.

    Safe-haven currencies have generally rallied this morning, with the US dollar trading close to its two-week peak.

    与此同时, Gold prices are steady as concerns about a faster pace of policy tightening by the Fed balance out safe-haven demand fuelled by escalating tension over Ukraine.

    US Economist at PIMCO Tiffany Wilding said that, amid continued inflationary pressure and low unemployment, the asset manager expects the central bank to use its Wednesday meeting to to ‘reiterate recent guidance’ and hold off on an interest hike until March.

    她补充说: ‘Officials now expect a March lift-off, three to four rate hikes this year and an earlier and faster start to quantitative tightening, which we expect to begin in June or September.

    ‘We think it’s a close call as to whether they announce the end of asset purchases one month earlier (即. mid-February) than widely expected (mid-March).

    ‘In the press conference, 满的 [Jerome] Powell could even provide additional details on how officials prefer to shrink the balance sheet.’

    While the FTSE has suffered over the past week, it remains substantially up on a year ago

    While the FTSE has suffered over the past week, it remains substantially up on a year ago

    然而, senior vice president of research at Fisher Investments, Aaron Anderson, suggested that the Fed’s next steps will not necessarily be negative for stock markets.

    他解释: ‘The Fed may move early this year to get a hike or two in before midterms, but it is not likely to be too active in the midst of a heated election season.

    ‘Although many continue to worry that the Fed tapering its quantitative easing (QE) program and hiking interest rates will be market headwinds, data shows tapering and initial rate hikes aren’t inherently negative for stocks.

    ‘We believe QE is widely misunderstood and hasn’t stimulated the economy or fueled inflation as many believe.

    ‘在我们看来, strong fundamentals and the anticipation of rebounding economic activity – not monetary policy – have driven stock markets’ rise since March 2020.’