FTSE 100 closing price of 7,302.17, 0.0%
FTSE finishes flat in quiet start to the week
GBP/USD regains some lost ground following BoE
Oil gains as House passes infrastructure bill
Crypto rally sees Ethereum hit record high
By Samuel Indyk
Investing.com – The FTSE 100 finished flat on Monday in relatively quiet trade to begin the week.
Abrdn (LON:ABDN) was the best performing stock in the blue-chip index as the investment company confirmed discussions are underway to purchase Interactive Investor in a deal that could be worth around £1.5 billion.
Across the pond, focus was on Tesla (NASDAQ:TSLA) after CEO Elon Musk asked his army of Twitter (NYSE:TWTR) followers whether he should sell billions of dollars worth of shares to pay a tax bill. The poll was a resounding ‘Yes’ and Musk later confirmed he would abide by the results. Shares were initially lower by over 7% in pre-market trade but pared losses to trade lower by around 3% at pixel time.
FX markets were generally quiet although GBP/USD found some support after the sell-off last week following the Bank of England interest rate decision. Markets are still pricing in an interest rate increase at the December meeting but trust in the central bank to follow through on its actions appears to be near an all-time ow.
WTI and Brent crude futures were both trading higher following the passage of the $1 trillion infrastructure bill in the US House. Hopes are that the increased infrastructure spending will help the oil demand recovery stay on track. Elsewhere, Saudi Aramco (SE:2222) raised its official selling price for its Arab light crude to Asia, which was also supporting prices. Markets are now intently focussed on rhetoric from the US regarding releasing reserves from the Strategic Petroleum Reserve and any update from Iranian nuclear talks which are set to get underway at the end of this month.
“Bitcoin is bouncing higher again, close to all-time highs fuelled by expectations that the era of cheap money looks set to hang around for longer, while inflation is expected to keep ticking up,” said Hargreaves Lansdown (LON:HRGV) Senior Investment and Markets Analyst Susannah Streeter.
“The recent surge in the crypto asset partly seems to have been caused by investors piling in, seeing it as a hedge against inflation.”
MARKET WRAP: FTSE finishes flat, GBP finds support after sell-off
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