Record Inflation Pressures Keep FTSE 100 Subdued


Persimmon leads homebuilders lower

UK inflation pressures hit records as growth cools only slightly

FTSE 100 up 0.2, FTSE 250 off 0.1 Updates prices; adds comment

June 23 Reuters Londons FTSE 100 was muted on Wednesday as economic data showed inflation pressures hit record levels this month, while gains in travel and mining stocks offset a slide in homebuilders.

The preliminary reading of the IHS MarkitCIPS UK Composite Purchasing Managers Index PMI pointed to one of the strongest monthly improvements in business activity since 1998.

The FTSE 100 index inched 0.2 higher with economically sensitive mining stocks including BHP Group and Anglo American providing the biggest boost, while travel stocks jumped nearly 7.

The domestically focussed midcap index slid 0.1.

Investors are still testing waters and as interest for value stocks rises, UK equities stand to perform better in the short term, said Andrea Cicione, head of strategy at TS Lombard.

A recent rise in inflation has kept the FTSE 100 pinned near the 7,000 mark, although easing lockdown restrictions and attractive stocks valuations have revived demand for stocks that stand to benefit from a steady economic recovery.

UK bank stocks, which perform better when interest rates are higher, were among the handful of gainers by 0825 GMT.

Other value stocks including energy and miners have also logged gains this week, tracking their U.S. peers as the Federal Reserve sought to calm market volatility that was…


Please enter your comment!
Please enter your name here