Our FTSE 100 index has flown over the much-coveted 9500 point barrier. This increase indicates an incredible rebound on the British equities market. This impressive time-breaking ascent follows the index barely managing to close above this key level just once on October 8th. The British index is only 1% off its all-time highs at the moment. Its close proximity increases the likelihood that it will be able to shatter these records as early as this week.
Moving into April, the British pound has shown a great deal of resilience, repeatedly finding support on pullbacks to 1.3250. This deep fits with the 200d moving average, which has acted as a great support line for the currency. As we commented on MarketWatch last week, the market blasted off explosively after taking a quick dip below the 50-day moving average. This line has previously served as a dependable support going back to May.
Today’s inflationary measures are deeply connected to current market inflationary pressures. In September, the consumer price index (CPI) flatlined month-to-month showing a 3.8% annual growth rate. The year-on-year rate of change for the core consumer price index (CPI) has decelerated to 3.5%. This is down from 3.6% in August and 3.8% in July, both without volatile goods. This is further evidence of a cooling in inflationary pressures, likely helping fuel those recent market gains.
Producer prices at the point of input have increased 0.7% from one year ago, and output prices have jumped 3.4% from one year ago. So we find that the inflation in input costs is climbing at a moderate pace. Output prices haven’t budged, providing at least some comfort amid inflation woes for consumers and businesses alike.
Market analysts have a keen eye on the pound. If it can’t hold above the 1.3150 level, it could indicate a long-term turn after the current correctional pullback. Investors are watching these thresholds very carefully. They’re trying to predict future ups and downs of the currency as well as of the stock market’s FTSE 100 index.