Retailers have been among the names lifting the FTSE 100 to a new multi-month high, while the dollar has been bolstered by some good jobs data.
FTSE 100 soars to new eight-month high
“The FTSE 100 ended 2022 as one of the best-performing indices, and it has started 2023 well too. Today has seen retailers at the head of the charge as Next pulls its usual trick of beating cautious estimates. This has seen Associated British Foods, Frasers Group and JD Sports make gains, although Next remains at the top of the pile with a 7% bounce. Investors, it seems, are keen to find havens away from the carnage in tech stocks, and the FTSE 100 is a prime candidate for this, given that only Ocado would really be accorded the moniker of a ‘tech stock’.”
Sharp ADP rise boosts dollar
“The dollar has been in search of a reason to rally, since yesterday’s Fed minutes didn’t really provide anything new. Today’s ADP payroll report, which smashed expectations and pointed towards signs of sharp wage growth, was just the ticket, although a rally of more than just a few days will need much more strong data, given how the Fed’s tightening is expected to reach its apogee in the next few months.”
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