Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

IF worries about the potentially exorbitant cost of heating your home haven’t had you break out in a cold sweat, then the potential increased cost of your mortgage just might.

While the price cap on fuel will give households some respite until April at least when the next review takes place, the cost of paying your mortgage could hit home a lot sooner for anyone on a variable or discount rate.

Household costs heating up

Comments from Bank of England governor Andrew Bailey that he is “concerned about inflation”, coupled with a remark from fellow monetary policy committee member Michael Saunders this weekend that a hike in interest rates would be “appropriate”, means markets and investors are now braced for a rate rise sooner rather than later.

The expectation now is that interest rates will rise to 0.25% by the end of the year, then 0.5% by March. The prospect of higher rates - which previously hadn’t been expected until summer - saw UK government bonds fall, with the yield on 10 year gilts hitting 1.21%; its highest level since May 2019.

Has ASOS done a Boohoo?

News that the chief executive of online fashion retailer ASOS has departed with immediate effect saw the shares slump by almost 16%.  Nick Beighton’s departure comes amid a warning that profits could fall by more than a third this year because of supply chain problems and Brexit.

Just over two weeks ago shares in rival fast fashion chain Boohoo suffered a similar fate - dropping 15% after a warning that profits there would be lower.

Elsewhere on the companies front we get the start of the US banking results season, with JPMorgan Chase on Wednesday and Goldman Sachs reporting third-quarter earnings on Friday.

Will there be turkey at Christmas?

The two key items on the UK’s economic agenda this week will be the jobs numbers and the August gross domestic product estimate, which will give us a better idea as to what is really happening behind those news headlines about driver shortages and unfilled vacancies putting even the traditional Christmas dinner at risk.

The latest US figures show the need for workers isn’t exactly being met with enthusiasm by potential candidates. The mere 194,000 who took up jobs in September is far less than the 500,000 expected and the weakest jobs growth in any month in 2021 so far.

On Wednesday too it’s the Opec monthly oil market report. The mounting energy crisis is of course not a UK-only problem. Cold winters in Europe and Asia drained gas reserves, while the economic rebound from the pandemic has increased demand, all at the same time as lower wind speeds in Europe this summer have reduced renewable energy generation.

Another topic that isn’t just a major talking point here in the UK either is inflation. Look out for data from the US, India, Germany, Japan, France and Italy.

You can also catch Tom Stevenson’s latest Investment Outlook here from Wednesday.

Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to a Fidelity adviser or an authorised financial adviser of your choice.

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