06:24 AM
FTSE set to slide on recovery jitters
Good morning.
The FTSE 100 is set to slip by around 0.32pc at the start of trading today, losing around 22 points after a similar decline yesterday.
London’s main index was earlier set to open higher after falling amid rising energy prices and rocketing inflation figures for August, which set traders on edge.
Investors have their eye on US retail sales data today which analysts fear could show evidence of further setbacks for America’s recovery, as prices soar and delta cases spread at a rapid pace.
Michael Hewson, chief market analyst for CMC Markets, said: “Given the current uncertainty it’s hard to escape the feeling that investors are struggling to find a narrative to justify pushing stocks higher.
“It’s all a big contrast to the optimism of the early summer, when the reopening trade for the northern hemisphere was prompting concern about an economic overheating. Now there appears to be a distinct chill in the air, with bond yields starting to slip back on the premise that the Fed may well delay its taper.”
5 things to start your day
1) More inflation pain ahead as prices rise at fastest pace since 2012: The Bank of England is under pressure to rein in its emergency stimulus measures after inflation surged to the highest level for almost a decade following a jump in oil prices and supply chain chaos.
Prices rose by 3.2pc last month in their fastest annual increase since 2012. That is up from 2pc in July, marking the sharpest month-on-month rise in the consumer price index since the Office for National Statistics started measuring it in 1997.
2) Winter blackout fears after substation fire cuts off French power: Britain is at risk of a winter energy blackout after a fire cut off a subsea cable which supplies the country with imported power from France, experts have warned.
The blaze at a National Grid substation in Kent shut down an “interconnector” capable of transmitting enough electricity for 1.4m homes.
3) John Lewis to hire 7,000 temporary workers for Christmas rush: John Lewis has embarked on a hiring spree of temporary workers and has promised free food to attract new recruits ahead of the Christmas shopping rush.
The employee-owned mutual, which also owns Waitrose, is seeking to fill 7,000 roles – 2,000 more than last year to meet demand over the busy festive period.
4) Brussels bids to centralise control of EU microchip industry: Ursula von der Leyen is seeking to take command of a centralised European microchip industry and prevent competition between countries as Brussels extends its reach into tech manufacturing.
5) British economy grows faster than all G20 rivals, says OECD: The UK’s economy expanded faster than any other developed country in the second quarter as looser restrictions boosted output.
Britain’s GDP growth of 4.8pc was the quickest among the G20 group of the world’s richest countries, according to the OECD.
What happened overnight
Asian shares gave up early gains to fall again on Thursday, weighed by declines in China and Hong Kong, even after a strong lead-in from Wall Street which had also pushed the dollar to the lower end of its recent range.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.45pc, while Japan’s Nikkei shed 0.47pc after hitting a 31-year high on Monday.
There were gains on Thursday in Australia, up 0.65pc, but the Hong Kong benchmark fell 0.42pc with property names continuing to drag – embattled developer China Evergrande Group fell another 8pc.
Chinese blue chips lost 0.66pc, a day after economic data missed expectations.
Coming up today
-
Corporate: Kier Group (full year); Ashtead Group, Hilton Food Group, Wickes (interim); C&C Group, IG Group Holdings (trading update)
-
Economics: Retail sales (US), jobless claims (US)
