Yahoo Finance FTSE falls at close and Wall Street slumps ahead of UK inflation data
A look at how the major markets are performing on Tuesday
Stock markets across Europe and the US lurched lower on Tuesday.
In London, the FTSE 100 (^FTSE) fell at the close to 7,569.31, down 0.3%. The CAC (^FCHI) was also flat in Paris, and the Frankfurt DAX (^GDAXI) was 0.3% lower. Across the pond, Wall Street opened lower as traders worried about China’s tepid post-pandemic recovery.
In the UK grocery inflation fell to 16.5%, its lowest level this year, ahead of inflation data due out tomorrow.
According to Kantar data released this morning, grocery prices dropped in the four weeks to 11 June – a fall from the 17.2% recorded a month ago, and below the record 17.5% recorded in March.
“A slight wobble on Wall Street last night caused a bit of a hangover on Asian and European markets, but the damage looks relatively minor,” Russ Mould, investment director at AJ Bell, said.
“The FTSE 100 dipped at the market open but soon clawed back all of its losses as investors piled into tobacco and pharmaceutical companies – defensive industries which theoretically see consistent demand whether economic conditions are good or bad.
“The rest of the week could be more challenging for UK stocks with inflation figures out tomorrow, followed by the next UK interest rate decision on Thursday. A rate hike to 4.75% looks highly likely.
“There was no shortage of drama among London-listed stocks big and small, with takeovers, stake building, profit warnings and legal threats among the key themes.”
Watch: How does inflation affect interest rates?
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