It’s the big day! And though it could be a tense one as investors wait and see how smoothly Biden’s inauguration goes off, a sense of optimism gradually crept over the markets.
A better than forecast UK inflation reading – up from 0.3% to 0.6% thanks to a jump in transport and clothing costs in December – put some pep in the pound’s step.
Sterling rose 0.3% against the dollar and 0.2% against the euro, causing the FTSE 100’s own gains to trail behind its European peers at 0.3%.
The midcap FTSE 250, on the other hand, climbed 1%, also greatly benefiting from a 7%-plus surge by WH Smith (LON:SMWH).
The past year has seen a complete reversal in the way the retailer’s business works. Pre-pandemic, its dying high street division was consistently overly-compensated for by a booming travel arm. Now the tables have turned; December saw the retail business maintain 92% of the revenue seen in 2019, compared to the 36% managed by travel. That was still ahead of expectations, however, explaining why investors are so keen to jump on board during this particular chapter in WH Smith’s history.
The Eurozone indices were well ahead of the FTSE on Wednesday. The DAX hefted itself back above 13,900 following a 0.7% increase, while the CAC hit 5,635 as it climbed by the same amount.
At the moment the Dow Jones is looking a tad on the slow side, at least if its futures are anything to go by, heading for a 0.1% increase when trading starts in the US. It could, justifiably, be the nerviest index this Wednesday, warily eyeing the fraught domestic situation on the day of the inauguration.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."