Stubborn Inflation Drags Down FTSE 100
(RTTNews) - FTSE 100 of the London Stock Exchange dropped close to half a percent as annual inflation persisted in double digits, triggered fears of further monetary tightening by the Bank of England.
Earlier, data showed annual inflation in the U.K falling to 10.1 percent from 10.4 percent in the previous month. Markets were expecting it to fall to 9.8 percent. Core inflation remained stubborn at 6.2 percent against expectations of a fall to 6 percent. Monthly inflation dropped to 0.8 percent in March, from 1.1 percent earlier, whilst markets had expected it to fall to as low as 0.5 percent.
FTSE 100 oscillated between 7,871.63 and 7,893.61 versus the previous day's closing level of 7,909.44.
The benchmark index of the London Stock Exchange is currently trading at 7,882.31, down 0.34 percent on an overnight basis.
In the 100-scrip index, only 30 are trading in the overnight green zone.
Coca Cola HBC, Imperial Brands and British American Tobacco have gained more than 1 percent.
Fresnillo declined more than 4 percent, followed by Antofagasta that shed more than 3 percent.
Ocado Group, Anglo American, British Land Co, Rightmove, BP, Kingfisher and Land Securities Group, all declined more than 2 percent.
Fed fears lifted the Dollar Index 0.28 percent to 102.03, pushing the GBP/USD pair 0.05 percent lower to 1.2418.
Rate hike expectations reflected in yields on U.K.'s ten-year bonds rising 3.8 percent to 3.8875% from the previous close of 3.746%.
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