Weekly Round Up
Markets remained cautious this week and relatively flat, the FTSE100 has seen a weekly negative return of 0.59%. Investors have reflected on this week’s inflation data showing the UK inflation jumping to 2.1% year-to-May above the Bank of England 2% target rate. Rising costs in clothes, fuel and beverages have impacted data from the year past when demand was very weak due to the COVID pandemic.
U.S. stocks fell as much as 1% on Wednesday before recovering, after the Federal Reserve announced that they expect to raise interest rates twice by the end of 2023, this is earlier than they revealed only a few weeks ago. The announcement comes as increasing sectors are seeing already-stretched valuations making it tougher to justify, and with the increasing potential of higher inflation entering the economy.
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