Football fever fires up spending

Susannah Streeter, chief investment strategist at Wealth Club, said: “Investors look like they’ve struggled to get out of bed this morning, with the Footsie flat in early trade.

“The blue-chip index moved very lightly higher after the open, with little on the economic calendar to fully jolt markets awake.

“England’s stunning World Cup victory over Mexico will be seen as a big win for the hospitality industry, with bars and pubs set to cash in further on the team’s progress as fans celebrate.

“The tills were ringing all night at establishments which stayed open for the game, and the tournament is expected to provide a multi-million-pound boost to the industry as England’s run continues.

“According to payments company Dojo, spending at pubs and bars was already running 17.3 per cent higher during the first two weeks of England’s World Cup campaign than in the preceding fortnight, with July’s takings expected to swell further.

“Football fever is also likely to trigger a fresh wave of spending on party food, cold drinks and barbecue essentials, as fans make the most of the good weather in the run-up to the game against Norway on Saturday.

“With the mood turning euphoric towards the England team, it could help provide a short-term lift to consumer confidence.

“However, if England’s run is cut short next weekend, the feel-good factor could fade just as quickly, leaving any boost to spending likely to prove temporary rather than the start of a sustained improvement in household optimism.

“The big driver of sentiment on markets this week is likely to be the release of the Federal Reserve’s Open Market Committee minutes on Wednesday, which could offer fresh insight into attitudes towards interest rates. Last week’s weaker-than-expected US jobs data has already dampened expectations for multiple rate hikes.

“Oil prices have settled back towards their pre-Iran conflict levels, raising hopes that the knock-on effects of the energy shock may prove less severe than initially feared.