The FTSE 100 traded in a range on Tuesday as investors digested the latest economic and market developments resulting from the war in Eastern Europe.
Commodities were once again in focus as oil price resumed a move to the update and Nickel futures were suspended by the London Metal Exchange.
‘’The breath taking rise of commodities is causing a whirlwind of anxiety on financial markets and exchanges, as traders speculate about the knock on effects of the Ukraine conflict,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
“Nickel prices seriously hit nerves today, with trading suspended on the London Metal Exchange, after a record breaking spike in prices. The three month contract crossed the $100,000-a-tonne mark for the first time ever, doubling in value in just hours.”
The FTSE 100 was trading at 6,962, up just 1 point, shortly before midday on Tuesday. The FTSE 100 had traded as low as 6,893, with highs of 7,013 earlier in the session.
“After a Lazarus-like turnaround yesterday the FTSE 100 was back under pressure on Tuesday as the war in Ukraine grinds on and approaches the end of its second week,” says AJ Bell investment director Russ Mould.
Attention was now starting to shift from the initial volatility in oil prices to what it means for the global economy as fuel bills and food costs add to a cost of living crisis which started long before Russia invaded Ukraine.
“Stagflation, an ugly mix of inflation and recession, is the fear stalking the markets right now and the longer the war rages, the more likely this scenario becomes,” Mould said.
Polymetal sinks again
Polymetal shares were down 17% p as the LSE cancelled trades between 8.41am and 9.02am in precious metals mining company after the price spiked over 1,000% in trade that broke stock exchange rules.
Rightmove shares fell 4% to 625p as fears rising inflation rates and increased housing prices will reduce the house buyer activity relied upon by Rightmove.
Evraz was the top riser at 15.1% to 92p, M&G rose by 20% to 198.2p and ITV hit 6.2% at 79.6p in third place.
Evraz continued to see bargain hunters pick up the beaten up stock as the Russian invasion of Ukraine continued to rock the market.
M&G shares enjoyed a surge after it announced its £500 million share buyback offer to its shareholders.
ITV saw a return to favour after its lackluster announcement last week to launch streaming service ITVX, which was met with poor reception due to a percieved oversaturation in the streaming market against established competitors such as Netflix and Disney+.