The FTSE 100 could record another week of loss

The FTSE 100 is struggling for direction this morning and could be heading for its third consecutive week of loss, hampered by central banks more aggressive monetary policies to curb soaring inflation.

Tesco fell 0.3% after it said it was seeing early signs that customers were changing behaviour as they feel the pinch of higher prices, which makes the market "incredibly challenging".

Yesterday, the Bank of England voted to bump rates by 25 basis points to 1.25%, resisting pressure to implement a 50 bps increase after the Fed decided to implement its biggest rate rise since 1994. The cautious move comes as inflation in Britain reached a 40-year high.

The BoE also revised its forecasts for peak inflation to above 11%, vs.10% previously.

 

Things to read today:

Yen sinks after Bank of Japan sticks to ultra-loose monetary policy (Financial Times)

Stock markets plunge again as flurry of interest rate hikes fuels recession fears (The Guardian)