US markets at year-long highs

US inflation data was released yesterday, revealing a dramatic fall from 4% in May to 3% in June. This shows that their aggressive interest rate policies seem to have tamed the inflation rates, bringing them ever closer to the desired 2% rate. The major US markets responded positively to this news, hitting 15 month highs as a result. The US dollar also hit 15 month lows, when compared to a basket of other foreign currencies, which usually indicates strong market sentiment. 

Banks on the road to recovery

It’s been a rough few months for the financial sector, following the collapse of some major regional banks in the USA, as well as the European based Credit Suisse. Wall Street Banks are set to start announcing their profits for the last quarter in the next two days, which will reveal their resilience during the last quarter. It’s widely anticipated that they will be strong, as a raise in interest rates helps maintain profits. The Bank of England also announced yesterday that they believed “UK banks remain strong enough to support households and businesses”, which drove stocks of financial institutions on the FTSE into the green. 

JD Wetherspoon shares soars

JD Wetherspoon, the UK’s low-cost pub chain, saw its share price soar over 9% on Wednesday, after announcing sales above pre-pandemic levels. The announcement appointed the recent growth in sales to a high level of footfall during the three May bank holidays, as well as over the Easter period. Whilst Wetherspoons pubs across the country are benefitting from offering a relatively cheap activity during tougher economic times, the UK is a long way from a booming economy. This could mean there’s still tougher times on the horizon for JD Wetherspoon.

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Sources: Money Week, IG, AJ Bell, Financial Times, Bloomberg, Reuters