UK markets rebound after weak PMI data

Recession worries are ever-present, and keep weighing on markets. Released yesterday, the U.K. manufacturing PMI remained unchanged at 54.6, but the services PMI dropped to 51.8. Households are feeling the pinch of inflation, which soared to a 40-year high in April. This sent the pound down.

The FTSE 100 lost 1.5% yesterday, but bounced back 0.4% this morning, with commodity stocks among the biggest gainers.

Miner Glencore rose 2.1% after it said it is planning to at least $1.2 billion to settle bribery cases in the U.K. and the U.S.

Imperial Brands rose 2.8% after Goldman Sachs upgraded the stock to "buy", while Marks & Spencer fell 3.6% as it warned about its guidance for 2022 due to higher prices. Today, Ocado also warned of slowing sales growth for the same reason.

In addition, the "party gate" report about No.10's get-togethers during lockdowns will be released today.

 

Things to read today:

The Fed must act now to ward off the threat of stagflation (Financial Times)

Glencore Reaches Settlements With U.S., U.K., Brazil on Bribery, Market Manipulation (WSJ)

Ocado Sinks as Cost-of-Living Crisis Hits M&S Grocery Venture (Bloomberg)