Strong dollar, weak metal prices weigh on London indices

After Powell announced on Tuesday that rates will have to stay high for longer to curb inflation, investors got a bit of relief yesterday after he said “no decision” has yet been made on the size of the interest rate increase. This helped rate-sensitive stocks and allowed the FTSE 100 to end the session 0.1% higher.

But the prospect of higher rates and worries about recession boosted the dollar and led metal prices down, with miners such as Anglo American and Antofagasta weighing on the FTSE 100, down 0.7% this morning.

Endeavour Mining posted disappointing results and fell 8%, while Ladbrokes owner Entain declined 3% after posting lower attributable profit for 2022 and warning about regulatory headwinds for 2023.

Meanwhile, Aviva rose 3% after it posted operating profits that gained 35% in 2022 to £2.2 billion. The total dividend jumped 40% to 31p a share. It also announced a new £300 million share buyback plan.

Things to read today:

Macron-Sunak Reset Tilts Post-Brexit Balance of Power (Bloomberg)

China’s New Way to Control Its Biggest Companies: Golden Shares (WSJ)