There was some positive economic news for the British Government this morning, with confirmation it had borrowed less than expected last month.
New figures from the Office for National Statistics (ONS) showed that public sector net borrowing, excluding state banks, totalled £16.848billion. This is less than the average forecast of £18.5billion in a Reuters poll of economists.
But Government borrowing last month was still the fourth highest December on record, as the cost of supporting the economy through the pandemic continued.
Interest payments jumped largely due to higher inflation. The ONS said interest payments rose to £8.1billion last month, a record for the month and up £5.4billion from a year earlier.
FTSE 100
Meanwhile, the UK's top share index made a good start to the day after yesterday's plunge, but has some way to recovering the lost ground.
A few minutes after the market opened, the FTSE 100 was ahead 40.17 points, or 0.55%, at 7,337.32.
European markets dropped sharply on Monday as the impact of a possible Russian invasion of Ukraine worried traders.
Darren Schuringa, chief executive officer of investment adviser ASYMmetric ETFs, told the BBC that the situation in Eastern Europe was a concern.
He added: "This will continue to weigh on the markets for the foreseeable future until there's some type of resolution and more clarity as to what the outcome looks like."
The FTSE 100 finished Monday down 196.98, or 2.63%, at 7,297.15.
Shares in the US fell early yesterday, but staged a rebound and closed in positive territory.
Markets across the Atlantic are concerned about a range of factors including rampant inflation and looming interest rate hikes.
Investors expect the US Federal Reserve to signal tomorrow that it plans to raise rates in March, tightening monetary policy for the first time since it cut borrowing costs to near-zero soon after the onset of the pandemic.
Companies reporting today
- Finals: Sureserve Group
- AGMs: Marston's, Mitchells & Butlers
- Other updates: BEIS hearing with nominated new chair of accounting watchdog Sir Jan du Plessis