Markets rebound as US economy records fastest growth since 1984 – as it happened | Business

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“And despite higher than forecast US GDP figures it’s impossible not to consider the factors that propelled the country to those heights. Firstly, we can’t forget where the country had been during the first Covid pummelling, secondly, all that stimulus lubricating the wheels is going to start to disappear which is why growth is forecast to slow considerably. And that’s the bit investors need to focus on, where economies are going and not just where they’ve been.

“And looking through some of today’s earnings updates both in the UK and the US, there’s good news and then there’s bad.

Mastercard’s profits were given a nice nudge thanks to the return of the traveller, a universal factor which also helped EasyJet which reported surging forward bookings. But cost pressures and supply issues are still continuing to dog businesses of all kinds. UK drinks maker Fevertree and US chip maker Intel Body saw shares fall after both warned those lingering issues will impact profits in the near term.

“It’s something burger slinger McDonald’s has first-hand knowledge of, but as with all investments, there’s no one size fits all. Though shares fell after the market opened, they did recover slightly. Many of the factors which weighed down those golden arches have now been resolved and the buying power of the fast-food giant coupled with its brand loyalty and low-cost offer should put it on a better footing this quarter.

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