The latest from London: Slowing growth dampens the mood

09/15/2021 | 04:25am

The FTSE100 closed down 0.5% yesterday. The weaker-than-expected inflation data in the US benefited growth stocks. However, lower yields hampered banks stocks. The mood is getting sour.

London equity markets are flat this morning, following a close in the red for Wall Street. The weak retail sales and industrial production data in China are also weighing on investor sentiment, as several recent indicators showed that economic recovery is slowing down.

As autumn approaches, the number of infections remains high in the UK, and fears are growing that the government may be forced to implement new lockdowns despite vaccines.

In addition, although concerns about high inflation somewhat eased in the US with yesterday’s figures, U.K. data indicated that annual CPI inflation reached 3.2%, topping the 2.9% consensus.

According to the IMF, in 2020, the average inflation rate in the United Kingdom was at about 0.85 percent compared to the previous year. It is expected to slowly rise to reach 2 % by 2024. But recent trends may prove otherwise.

 

Source: Statista

 



Source: Reuters

 

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