Good morning and welcome to the IC's Markets Live blog where we detail the latest news which affects your portfolio
UK inflation rising
UK inflation rose to 2.1 per cent in May, up from 1.5 per cent in April, beating economists’ forecast of a rise to 1.8 per cent. According to the ONS, the largest annual upward contribution to inflation has come from transport costs although the reopening of the economy in recent weeks has clearly also helped fan the flames.
All eyes on the Fed
Meanwhile, for those worrying about inflation, attention will shift across the pond today. One key question will be playing on investors’ minds as the Federal Reserve releases a new set of projections later today: will US central bankers signal they might start raising interest rates sooner than 2024? US inflation reached 5 per cent in May, having risen faster than analysts expected, to its highest level in nearly 30 years. So far, central bankers have said they expect inflation to be transitory and markets have been unphased as yet. Any signals of a tightening of monetary policy coming sooner than expected could hurt US growth stocks on lofty valuations.
Made.com prices IPO
Over to companies, furniture retailer Made.com is set to bag a £775m valuation after pricing shares ahead of its IPO, expected to take place on Monday (21 June) although it was forced to price its shares at 200p a pop, the bottom of its indicated range - which could signal some sagging enthusiasm for IPOs in London.
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