London stocks rose in early trade on Wednesday despite concerns about inflation, helped along by some encouraging data out of China, amid expectations the US Federal Reserve will announce its biggest rate hike since 1994.
At 0835 BST, the FTSE 100 was up 0.6% at 7,233.19.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Financial markets have been beset with shivers of anticipation of more aggressive interest rate moves, and as the clock ticks down to the key Federal Reserve meeting later, nerves are set to stay frayed.
“The jitters have sent the Nikkei in Japan lower but Chinese data indicating a better recovery than expected after some Covid lockdowns eased, has helped lift the Hang Seng in Hong Kong and the Shanghai Composite. Industrial output rose 0.7% in May from a year earlier, after falling 2.9% in April. This is likely to support commodity stocks like miners but any ripples of relief are set to be short-lived. Retail sales are slow to recover, still down 6.7% on the year in May, which doesn’t bode so well for luxury goods manufacturers.”
Jarvis Investment Management Ltd offers a wide range of stockbroking and administration services and solutions. Their parent company, Jarvis Securities plc (LON:JIM) is listed on AIM.
