Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

UK stocks close lower, hit by Wall St selloff on inflation data

2022 09 13T161147Z 1 LYNXMPEI8C0Z4 RTROPTP 4 MARKETS STOCKS FTSE - Global Banking | Finance

By Bansari Mayur Kamdar, Johann M Cherian and Aniruddha Ghosh

(Reuters) -UK’s main equity indexes fell on Tuesday, echoing weak sentiment on Wall Street, as hotter-than-expected U.S. inflation data raised fears of larger interest rate increases to offset surging prices.

The blue-chip FTSE 100 dropped 1.2% to snap a three-session gaining streak, while the domestically focussed FTSE 250 index slid 1.8%.

The indexes had already been on shaky ground after data on Tuesday signalled a weakening UK job market even as the unemployment rate fell to its lowest since 1974.

The selloff gathered momentum in afternoon trading, with Wall Street’s main indexes plunging over 3% as data showed U.S consumer prices unexpectedly rose in August, giving cover for the Federal Reserve to deliver another hefty rate hike next Wednesday.

“The weaker pound has given a bit of support to the FTSE 100, but the higher bond yields and weaker global growth that typically result from tighter Fed policy are a difficult mix for UK equities too,” said Oliver Allen, market economist at Capital Economics.

Homebuilders were among the worst performers on the day, down 3.6% amid worries over affordability and weakness in labour market.

“Given the sensitivity of housing markets to higher interest rates, it makes some sense that homebuilders’ shares have underperformed,” Allen added.

The British central bank raised interest rates the most since 1995 last month. It is expected to increase them again on Sept. 22, with traders placing an 86% chance of a 75 basis-point hike. [IRPR]

Ocado Group and Marks & Spencer fell 14.6% and 3.8%, respectively, after their joint venture Ocado Retail downgraded its full-year outlook, saying customers are trying to navigate the cost of living crisis by buying fewer products or cheaper items. [FTNMX551020]

Retailers were also a weak spot on Tuesday, falling 3.5%.

Grocery inflation hit 12.4% in the four weeks to Sept. 4, another record, adding 571 pounds ($670) to the average annual grocery bill, according to market researcher Kantar.

(Reporting by Johann M Cherian, Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila and Bernadete Baum)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post