The FTSE 100 edged higher on opening, supported by Melrose (MRO), which rallied as investors set aside supply issue to focus on management’s bullish outlook.
London’s blue-chip index rose 0.2%, or 17 points, to 8,081 as investors showed some wariness over the Trump trade and turned their attention to the prospects of higher US inflation and higher debt under the new administration.
‘The twin concerns of reigniting inflation and deepening the nation’s debt have quickly risen to the surface, while the likelihood of US “exceptionalism” and any number of trade wars, most notably with China, have taken the steam out of the post-election rally,’ said Richard Hunter, head of markets at Interactive Investor.
He added that the UK market had been eclipsed by technology and growth stock surges in the US but this could now change.
‘The UK’s reputation as a more stable, and even defensive investment destination tends to weigh…
