The London Stock Exchange’s index containing the 100 most prestigious companies, the FTSE 100, has made a sudden jump upwards by a remarkable 10% this morning.
By 10.00am UK time, it stood at 7,395, representing its highest point over the past 30 days.
The mainstream media is focusing on the insolvency of publicly listed clothes brand Joules, which after 33 years of trading, had its shares suspended ahead of the expected appointment of Interpath Advisory as administrators.
This has not caused the drop that the tabloids across the United Kingdom had predicted and in fact quite the opposite is the case.
Despite the British government’s will to raise taxes and unemployment and inflation figures due today and tomorrow before chancellor Jeremy Hunt’s autumn statement on Thursday, the Pound is actually up against the US Dollar at 1.18, and the FTSE 100’s stellar performance is defying the gloomy outlook which is being viewed by many citizens.
Inflation is still standing at around 10%, and there is speculation that interest rates could rise dramatically to around 5% in January as Britain’s recession continues, the economy reeling in the wake of lockdowns, followed by Brexit-related issues, and subsequently a floundering government led for a record short period of 44 days by Liz Truss who tanked the Pound and caused tremendous levels of uncertainty alongside equally short-lived Chancellor Kwasi Kwarteng whose mini-budget struck fear into the soul of hundreds of thousands of people before it was canceled following the resignation of both Ms Truss and Mr Kwarteng.
So far, the British job market has managed to hold up quite well. The 3,300 increase in new jobs was accompanied by an unemployment rate of 3.6%, which compares with 3.5% the previous month. This has been a positive figure.
Ultimately, it is still clear that volatility in the usually utterly stable stock markets and prestigious indices is the order of the day.
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