Yahoo Finance Wall Street lower amid strong retail sales data as FTSE stays higher
The FTSE 100 and European stocks were higher this Wednesday as markets digest the fall in the rate of UK inflation in January and Barclays' poor results.
The FTSE 100 (^FTSE) gained 0.21% to 7,970 points during afternoon trading, while the CAC 40 (^FCHI) in Paris gained 0.97% to 7,283 points. In Germany, the DAX (^GDAXI) rose 0.51% to 15,460.
Across the pond, Wall Street opened lower as investors pondered the outlook for interest rates after economic data showed strong consumer spending and an uptick in inflation across January.
The Dow Jones (^DJI) lost 0.41% to 33,951 points. The S&P 500 (^GSPC) slipped 0.39% to 4,120 points and the tech-heavy NASDAQ (^IXIC) retreated 0.17% to 11,938.
Stronger-than-expected retail sales data underscored a resilient US economy, which could offer more room for the Federal Reserve to raise interest rates.
Back in London, UK CPI rose 10.1% in the year to January, below City expectations for a 10.3% increase, and down from December’s 10.5% rise.
Read more: FCA takes action against illegal crypto ATMs in Leeds
Barclays (BARC.L) shares fell as much as 10% after missing analyst estimates with its results. It is the worst performer on the FTSE 100 this session.
John Moore, senior investment manager at RBC Brewin Dolphin, said: “While the bank is benefitting from the tailwind of better interest rate economics and has been razor sharp on costs, it has also had to set capital aside for overselling securities and seen fee income drop significantly at its investment banking division.”
Read more: UK inflation falls for third straight month but remains close to 40-year high
“That said, profits may have taken a hit but they remain at a healthy level and are underpinning shareholder returns through an increased dividend and share buyback programme.”
“When Barclays can turn its back on errors and legacy issues, which have been a consistent part of results in recent years, the bank should be the best placed of the major UK lenders in the current environment.”
Barclays disappointing results appear to be having a drag effect on other banks with Lloyds (LLOY.L) losing 3.03% and NatWest (NWG.L) down by 2.10%.
Meanwhile, Brent crude (BZ=F) slipped and was trading at around $84/barrel as a much bigger-than-expected surge in the US crude inventories and anticipation of further interest rate hikes sparked concerns over the prospect of weaker fuel demand and economic recession.
In Asia, Tokyo’s Nikkei 225 (^N225) lost 0.37% to 27,501 points, while the Hang Seng (^HSI) in Hong Kong slipped 1.54% to 20,788. The Shanghai Composite (000001.SS) dropped 0.39% to 3,280 points.
Watch: US inflation slows to 6.4%, but price pressures re-emerge
Download the Yahoo Finance app, available for Apple and Android.