Romain Fournier

Chief Editor
Having worked in the British, French and Swiss financial press, Romain is able to report on local and international issues, as comfortable in French as in the language of Shakespeare, Romain Fournier leads the editorial team at Marketscreener. Fine connoisseur of the English-speaking markets, Romain delivers an editorial every day on US and UK markets.

Beijing comes to rescue the LSE

05/20/2022 | 05:03am EDT

The big selloff on Wall Street, sparked by worries over the impact of inflation as Target and Walmart posted lower-than-expected results, spread to the UK. Investors were already reeling from the release of data showing inflation reached 9% in April in Britain. Commodity stocks limited losses and the FTSE 100 ended 1.82% lower yesterday.

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)

© 2022
Stocks mentioned in the article
ChangeLast1st jan.
FTSE 100 0.33% 7235.37 Delayed Quote.-2.38%
PRUDENTIAL FINANCIAL, INC. -0.62% 96.835 Delayed Quote.-10.01%