FTSE 100 stable despite selling off in Asia and the US overnight, food prices soar, Dalata Hotels regains profits
“The FTSE 100 recouped some of Tuesday afternoon’s losses on Wednesday morning despite continued overnight selling in the US and Asia,” says Russ Mould, Chief Investment Officer of AJ Bell.
“As was the case earlier in the year, the FTSE 100’s collection of companies at more attractive valuations and a good spread of financial stocks is helping at a time when it looks like interest rates will rise and stay higher. high for some time.
“This is further supported by a weak pound which increases the relative value of overseas earnings which dominate the index.
“The fall in wholesale gas prices yesterday, as European storage targets were met earlier, raised hopes that the current energy crisis may ease slightly.
“However, as we move from the summer period into autumn and winter, the pressures here will only get worse.
“Food price inflation continues to be a problem accompanying soaring energy bills, with the latest data revealing, somewhat alarmingly, that fresh food prices are rising at their fastest level since the Great Financial Crisis. .
“Big economic announcements later this week come from the US and include PMI numbers and the latest jobs report.
“While the two are generally influential in the markets, this time around the firmness of Federal Reserve Chairman Jerome Powell’s hawkish stance in Jackson Hole means it could be truly surprising to alter the market’s trajectory.”
Dalata Hotel Group
“Irish Hotelier Dalata returns to profit amid a recovery in tourism following the pandemic. More impressive was the fact that he far surpassed his pre-pandemic performance in 2019.
“The problem will be that this is only a short-term respite given rising costs and the cost of living crisis hitting discretionary spending.
“Dalata is doing what it can about the things it can control, fixing its energy costs for the second half and making sure its supply and operating systems are running as efficiently as possible.”
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