Market movers and why Provident Financial has plunged again

Equity markets in the UK and Europe made a good start, following on from a late surge in the US on Friday and a positive start to the week in Asia.

Inflation and US monetary policy has been the catalyst for recent volatility and remains the centre of attention, with all eyes on Jerome Powell's economic testimony this week and the Federal Reserve's preferred inflation measure, the core personal consumption expenditures price index, due out on Thursday.

This week gives investors the first major opportunity to establish what new Fed chair Powell thinks about the US economy, as he appears before congress on Tuesday and Thursday.

Mr Powell has had a baptism of fire in the three weeks since he took on his new role, with markets experiencing huge volatility on fears that inflation will see the Fed raise rates more aggressively than anticipated. The opportunity to establish what he thinks about the US economy, inflation, interest rates and asset values is therefore highly important for markets.

Current market valuations were one of the main talking points from Warren Buffett's annual letter, as he gave investors his view of the world. His efforts to deplete his burgeoning war chest and pull the trigger on a major deal in 2017 were all scuppered by his inability to find anything that he believed offered a "sensible purchase price".

For the ultimate deal maker and value investor to conclude that the market is not offering any attractive buying opportunities is a potentially worrying sign for investors.

Ahead of its results tomorrow, Provident Financial shares are spiralling sharply lower.

Two separate investigations by regulators are likely to result in significant fines for the company, but today's move follow weekend reports that it may be planning a huge rights issue to try and get the company back on track.