A crackdown on commodity prices in China allowed the European markets to creep higher on Monday.
Tackling the ‘speculators and hoarders’ that have so aggressively driven up the price of raw materials, China’s National Development and Reform Commission warned it would show ‘zero tolerance’ towards the ‘excessive speculation’ of recent months.
Instead of tanking the FTSE’s sizeable commodity cabal, the index’s oil and mining stocks were broadly up on the day, with BHP Group (LON:BHPB) (down just 0.1%) and Antofagasta (LON:ANTO) (slipping 1.2%) the outliers.
Overall, the FTSE 100 rose 0.3% to 7,040, perhaps on speculation that this Chinese commodity warning could help ease the inflationary pressures that have so spooked the markets this year.
The Dow Jones – which could well end May above 35,000 if things go its way this week – is heading for a 0.4% rise of its own, one that would push it past 34,360.
It is a very quiet day – and week – all told, especially with Germany and France enjoying a May Bank Holiday.
The only noticeable event this afternoon is an appearance from Bank of England head Andrew Bailey, who is speaking before the Treasury Select Committee in London. Any comments regarding monetary policy, interest rates and/or inflation could cause some movement from the pound, which has started the week up 0.1% against the dollar and flat against the euro.
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