Investors worry that it may get worse this year. In a note, Berenberg puts a 40% risk on a recession in the UK (15ppt of a mild downturn, 25ppt of a severe recession).
But in the midst of all this, good news from China gave the LSE a boost. The FTSE 100 was up 1.8% this morning after Beijing cut its five-year loan prime rate 15 basis points to 4.45% to support a weakened real estate sector and boost economic growth.
Stocks that are exposed to China, such as insurer Prudential and mining stocks, are lifting the blue-chip index.
Things to read today:
China cuts mortgage lending rate by record as lockdowns hit economy (Financial Times)
Fed to Plow Ahead on Half-Point Hikes, Undeterred by Stock Slump (Bloomberg)