FTSE 100 set make a positive start to the new trading week though inflation

The FTSE 100 is expected to get off to a tentative but positive start, mirroring the performances of Asia’s main stock markets, which continue to be haunted by fears of a US inflationary spike.

Consumer consumption and price data later this week will possibly decide whether America’s Federal Reserve begins tapering the ultra-accommodative monetary policy that has supported equity markets.

With a raft of Fed speakers slated to speak this week, including influential board governor, Lael Brainard, we should get some colour on the central bank’s direction of travel ahead of Friday’s data.

Elsewhere, the volatility of Bitcoin, down a further 5.1%, has resulted in a surge in demand for gold, which hit a four-month high of just shy of US$1,900 an ounce before edging back slightly.

Red hot commodity prices continued to cool as China complained about the ‘speculative excesses’ driving them higher.

“Given that China is a large net importer of ores, there is a limit to what they will be able to achieve in the medium to long term,” said Jeffrey Halley, markets analyst at OANDA.

“However, in the short-term, their rumblings seem to be having the desired effect.”

Looking ahead, we’ll get a better insight on the state of the retail sector with updates from Marks & Spencer (), a stalwart of the high street, (), owner of large tracts of Covent Garden and Soho, and Pets at Home (), which is making a success of its hybrid clicks-and-bricks business model.

Also reporting are the insurer Aviva (), SSE (), the energy group, and platinum specialist Johnson Matthey ().

Around the markets

• Pound US$1.4155 (flat)
• Bitcoin US$35,037.05 (-5.1%)
• Gold US$1,887.40 (+0.45%)
• Brent crude US$66.81 (+0.56%)