Inflation spooks UK investors

After data showed the UK CPI rose to a 40-year high of 10.1% in July, investors are bracing for strong action from the Bank of England. As a result, the yield on the 10Y Gilts rose 16 bps yesterday, and the FTSE 100 fell 0.3%. The index is down 0.2% this morning.

Core CPI data jumped to 6.2%, while the Retail Price Index soared to 12.3%.

In addition, data from the Office for National Statistics showed the price of goods produced by UK factories climbed 17.1% this year.

Despite reporting big losses, AO World soared 9.6% after posting an upbeat guidance for the next year.

Made.com fell 10.0% after the online furniture retailer said it is looking at selling more shares to strengthen its balance sheet.

 

Things to read today:

Student makes $110mn trading meme stock favourite Bed Bath & Beyond (Financial Times)

Fed Officials See Need for Continued Interest-Rate Increases, but Less Certainty Over Destination (Wall Street Journal)