FTSE 100 is up again as Johnson resigns

Investors welcome the Fed minutes yesterday, which gave them more clarity on the central bank’s next steps in monetary policy. Officials are committed to reducing inflation, despite the many signs that a recession is imminent. A rate hike of 0.75% at the July meeting seems likely.

The FTSE 100 is up for a second consecutive day, gaining 0.7% on Thursday morning, as a BBC report announced that Boris Johnson would resign as leader of the Conservative Party during a speech later today.

The British Prime Minister has been weakened by a number of departures in his government. He is expected to remain in office at Downing Street until next autumn.

Oil & gas stocks perform best, with Shell up 2.3% after the oil major said it would reverse previous write-offs of up to £3.8 billion this quarter due to the surge in energy prices.

Meanwhile, housebuilder Persimmon tumbled 5.8% after it warned that the number of homes it delivered in the first half was lower than expected.

 

Things to read today:

US Bond market flashes warning signal of economic slowdown (Financial Times)

Inflation Fears Drove Larger Fed Rate Increase in June (WSJ)

Who Would Replace Boris? (Bloomberg)