Oil and bank stocks lift the London index

Commodity prices are up, as the dollar softened, and Russia announced yesterday that it would be reducing the supply of the Nord Stream 1 pipeline to 20%. This benefits the commodity-rich FTSE 100 index, which was up 0.6% this morning.

The banking sector is also doing well, due to rising bond yields.

Among stocks, Unilever jumped 2.2% after it raised its full-year sales guidance due to price increases.

Investors are awaiting tomorrow’s Fed meeting, when it will announce a new rate hike. They also eagerly awaiting the results of major technology companies. Yesterday, Walmart slashed its earnings guidance as its customers feel the pinch of inflation.

Meanwhile, BofA Global Research economists said it a note now expect a UK recession in 2023, with unemployment rising to 5.3% by the end of 2024.

However, it believes that UK banks are recession ready, with a “shallow credit cycle for banks on modest loan growth and excess provision reserves.”

 

Things to read today:

Unilever raises prices 11% as it grapples with ‘unprecedented cost landscape (Financial Times)

Walmart Cuts Profit Outlook as It Lowers Prices to Move Goods (WSJ)