A sector that is exceeding investors’ expectations so far is certainly banking. HSBC surprised markets with a 74% profit rise in the latest quarter and a $2billion buyback. This helped the FTSE 100 rise 0.5% this morning.  Miners also contributed to this rise, booster by higher commodity prices.

Meanwhile, Darktrace tumbled 5.6% after Peel Hunt initiated coverage with "sell" rating.

On the macroeconomic side, it seems that Britain’s recovery is lagging behind the US and the eurozone. Berenberg looks for the US and Europe to expand “roughly in lockstep in the next few years, with no more than a slight narrowing of the post-COVID-19 gap in GDP levels between the US and the Eurozone”. However, it sees the UK diverging.

And with the numbers of infections surging compared to the rest of the continent, things are not looking well...

 

Things to read:

We’re headed for a global energy crisis. What we need is a transition strategy (Washington Post)

Xi’s “Common Prosperity” in Theory and Practice (WSJ)

Sunak prioritises NHS, skills and levelling up in Budget windfall (Financial Times)