UK investors were disappointed by data released on Friday signaling that Britain has just entered a recession. In the third quarter, its economy contracted by 0.2 per cent, according to data from the Office for National Statistics. The Bank of England estimates that the recession could last two years, while S&P Global Market Intelligence and HSBC believe that it will end in the first half of 2023.

Meanwhile, Federal Reserve Governor Christopher Waller dampened the mood on Sunday, when he said at a conference in Australia that the central bank needs to see much more data confirming that inflation is cooling before it "really start thinking about taking our foot off the brakes here.”

These comments pushed the dollar up against the pound, which boosted exporters stocks and sent the FTSE 100 up 0.4% this morning.

Among stocks, British events organiser Informa soared 6.2% after raising its full-year earnings guidance.

 

Things to read today:

China Dials Back Property Restrictions in Bid to Reverse Economic Slide (WSJ)

Is austerity the only way for Jeremy Hunt to reassure the markets? (The Guardian)

Fed faces tough task deciding when to stop raising rates, official warns (Financial Times)