CITY DASHBOARD FTSE 100 heads higher ahead of key inflation and wage numbers

LONDON’S FTSE 100 kicked off the week in busy fashion today ahead of a week of data that will provide more clues on the health of the UK economy.

The capital’s premier index closed 0.83 per cent higher yesterday at 7,947.60 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, advanced 0.47 per cent to 20,124.52 points. Investors were seemingly sitting on their hands and waiting for new figures from the Office for National Statistics this week unveiling whether inflation is still falling and wage growth is racing ahead. Fresh jobs numbers today are expected to reveal pay is rising at the fastest pace since the ONS started tracking the data over two decades ago, but still lagging inflation.

Inflation numbers, out tomorrow, are likely to show the rate of price growth stayed in the double digits last month. It is expected to decline rapidly this year to somewhere around four per cent by Christmas. The FTSE 100 has surged to new record highs this year despite economists warning the UK is on track for a recession this year. Figures out last week revealed the country narrowly avoided a technical slump at the end of 2022.

Britain’s biggest high street banks begin posting full year results for 2022 this year and are expected to have collectively raked in record profits of nearly £40bn, driven by the sector reaping in windfalls from the Bank of England’s 10 successive interest rate hikes. Consumer goods giant and Marmite maker Unilever came second in the FTSE 100, climbing over three per cent.

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Weakening

Electrical retailer Currys may be looking at calmer waters ahead after some of its Nordic competitors said they were now focused on restoring profitability after discounting heavily to pursue market share, analysts at Liberum said yesterday. Liberum said consumer demand looks set to remain subdued for some time, but more rational peer behaviour will be a positive. They set a target price of 135p.

Analysts at Peel Hunt have backed storage specialist Lok’nStore after the firm said revenues were up 10.3 per cent in the six months to 31 January and move-ins jumped 13.5 per cent. Price per square foot is up 9.2 per cent. Anticipated cost pressures are mitigating some of the top line growth. They have reiterated their buy recommendation with a target price of 1,150p.