tock and cryptocurrency markets have steadied at the end of another volatile week of trading.
Global recession fears triggered heavy selling yesterday as the FTSE 100 index closed 1.6% lower on the back of weaker mining stocks.
A late recovery on Wall Street helped the mood today, although London’s top flight and New York’s major indices are set to be sharply lower across the week. Bitcoin, which yesterday fell below $26,000 in a flight from risk, recovered today.
FTSE 100 set to open higher, Bitcoin rallies
A late fightback for Wall Street markets should mean Europe enjoys a stronger session at the end of another volatile week for investors.
Persistent inflation, slowing economic growth and the prospect of sharply higher interest rates have spooked markets, leaving the tech-focused Nasdaq 6% lower this week despite last night’s rebound into positive territory.
The FTSE 100 index lost all Wednesday’s 100 point gains in trading yesterday as mining stocks including Glencore tumbled on the weaker demand outlook CMC Markets is forecasting a recovery of 70 points to 7303 after Asia markets continued the momentum built by the late improvement on Wall Street.
Sentiment is likely to remain fragile, however, as this week’s US inflation figure of 8.3% has raised the prospect of more aggressive action by Federal Reserve to get prices back under control.
Yesterday, San Francisco’s Mary Daly became the latest Fed official to make the case for another two half point increases at the next two central bank meetings, while chairman Jerome Powell said the priority was to get inflation back under control.
The flight from risk assets has sent shockwaves through cryptocurrency markets, although there was some respite today as Bitcoin returned above $30,000. Oil prices are also firmer, with Brent crude futures trading at $109 a barrel this morning.
Credit: www.standard.co.uk /