FTSE benefits from oil prices recovery

The commodity-rich FTSE 100 struggled yesterday, as Brent prices fell more than 5% after China implemented new lockdowns due to rising Covid cases, and following reports that Saudi Arabia supports OPEC+ increasing supplies. The index edged down 0.1%.

However, oil prices recovered today, and so did the FTSE 100, after Saudi Arabia denied these reports.

Meanwhile, Downing Street said that a report from the Sunday Times that the new government is considering a Swiss-style relationship with the EU is "categorically untrue".

"This government is focused on using our Brexit freedoms to create opportunities that drive growth and strengthen our economy. Brexit means we will never again have to accept a relationship with Europe that would see a return to freedom of movement, unnecessary payments to the EU or jeopardize the full benefit of trade deals we are now able to strike around the world," a spokesman said.

This comes as new data from the Office for National Statistics shows that public sector net borrowing reached £13.5 billion in October, compared with £9.3 billion in October 2021. This is still well below the consensus forecast of £21.5 billion.

Markets also got a boost from Fed official Mary Daly’s speech yesterday, when she warned about the dangers of going too far on monetary policy tightening.

Things to read today:

Can the UK improve its Brexit deal? (Financial Times)

U.S. Crude Oil Price Slips Below $80 a Barrel (WSJ)

Swiss-style Brexit deal is a ‘political non-starter’, says Liam Fox  (Daily Telegraph)