UK investors focus on US price data and the BoE meeting

The FTSE 100 was flat this morning as it reopened after the long bank holiday weekend. On Friday, a set of strong corporate news and good US job figures lifted the FTSE 100, which gained 1%. Higher oil prices also lifted majors such as Shell. However, the index was down -1.2% for the week.

Energy stocks were underperforming today as oil prices retreated after two sessions of gains.

Among stocks, International Consolidated Airlines (IAG) rose 1.5% as it received a Buy rating from Peel Hunt.

Sportswear retailer JD Sports Fashion jumped 2% after it said it is looking  to acquire French peer Courir for 520 million euros.

Investors are now focused on the April U.S. consumer price inflation report due on Wednesday, as well as the Bank of England meeting on Thursday. “Significant upside surprises to consumer price inflation virtually guarantee that the Bank of England (BoE) will lift the bank rate by a further 25bp to 4.5% on Thursday.”, according to Berenberg, which also puts a 30% probability on final 25bp hike at the 22 June meeting.

 

Things to read today:

Britons Will Get Poorer Faster Than Their Wealthy Peers, Survey Shows (Bloomberg)

With a liquidity crisis looming, investors must switch their thinking (Financial Times)

About 700,000 UK Households missed rent or mortgage payments last month (The Guardian)