SPX3,693.23-64.76 -1.72%
DIA295.86-4.66 -1.55%
IXIC10,867.93-198.88 -1.80%

UK shares dip as rate hike jitters overshadow cheer over fall in inflation

UK shares dip as rate hike jitters overshadow cheer over fall in inflation

Reuters · 09/14/2022 03:32
UK shares dip as rate hike jitters overshadow cheer over fall in inflation

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a window

FTSE 100 down 0.7%, FTSE 250 off 0.3%

- UK shares fell on Wednesday, after data showing a surprise fall in British consumer prices in August did little to ease bets of the Bank of England hiking interest rates by 75 basis points at its meeting week.

A selloff in Wall Street overnight after a rise in U.S. inflation figures prompted bets for aggressive policy tightening in the world's largest economy also weighed on the London market.

The commodity-heavy FTSE 100 .FTSE slid 0.7%, while the domestically focussed mid-cap index .FTMC declined 0.3% at 07:13 GMT.

Oil .FTNMX601010 and mining stocks .FTNMX551020 shed 1.7% and 1.0%, respectively, on fears of aggressive hikes by the Federal Reserve that could slow down the global economy and dampen commodity demand. O/R MET/L

Lower fuel prices caused an unexpected fall in British consumer price inflation last month, official figures showed, offering some relief to households after the CPI rate hit a 40-year high.

However, traders continued to see an 84% chance of a 75 basis point hike in interest rate to 2.5% by the Bank of England on Sept. 22, which would be its biggest rate rise since 1989, excluding a brief attempt to bolster sterling during a 1992 exchange rate crisis.

Redrow Plc RDW.L gained 0.8% as the housebuilder reported a 31% rise in annual profit.

Croda International CRDA.L rose 2.1% on a ratings upgrade from Jefferies.



(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich)

((johann.mcherian@thomsonreuters.com;))


For related prices, Reuters users may click on - * UK stock report .L FTSE index: 0#.FTS6 techMARK 100 index: .FTT1X FTSE futures: 0#FFI: Gilt futures: 0#FLG: Smallcap index: .FTSC FTSE 250 index: .FTMC FTSE 350 index: .FTLC Market digest: .AD.L Top 10 by vol: .AV.L Top price gainers: .NG.L Top % gainers: .PG.L Top price losers: .NL.L Top % losers: .PL.L
* For related , click on - * UK hot stocks: HOT and GB Wall Street: .N Gilts report: GB/ Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks: .T HK stocks: .HK Sterling report: GBP/ Dollar report: USD/
* For company prices, click on - * Company directory: UKEQ By sector: FTAX
* For pan-European market data, click on - * European Equities speed guide................ EUR/EQUITY FTSE Eurotop 300 index........................... .FTEU3 DJ STOXX index................................... .STOXX Top 10 STOXX sectors........................ .PGL.STOXXS Top 10 EUROSTOXX sectors................... .PGL.STOXXES Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S Top 25 European pct gainers.................... .PG.PEUR Top 25 European pct losers..................... .PL.PEUR