Yesterday, defensive sectors were the biggest performers, highlighting ongoing growth fears. Energy stocks were hit hardest. At the end of the session, the FTSE100 fell 0.2%.

A central bank has already hinted at an earlier-than-expected rate hike. Australia officially abandoned its 0.1% target for three-year debt. It also removed forecasts for rates to stay put until 2024.

After Australia and the U.S., the Bank of England is expected to release a statement on its monetary policy on Thursday, and most commentators expect a rate hike.

High prices are sticking, with inflation not as “temporary” as initially thought by the Fed.  South Korean price growth accelerated to a ten-year high. The impact of high prices could also be felt in Monday’s ISM survey about U.S. manufacturing in October.

Clothing retailer Next is down 2.8% after it warned that sales growth was slowing, while cybersecurity firm Darktrace tumbled 4.8% after the announcement that British private-equity firm Vitruvian Partners sold around 11 million shares in the company.

 

Things to read:

Coal Miners profit from energy market turmoil (Financial Times)

Financial System Makes Big Promises on Climate Change at COP26 (WSJ)

Stagflation is coming: central banks and governments are right to be terrified (Daily Telegraph)