FTSE 100 falls after soaring wages spark inflation concerns Business

And thank you for joining me this morning. Today, we have updates from the Office for National Statistics on the labour market, including pay growth, unemployment and sickness information. Pay growth is at its fastest since records began, a blow to the Bank of England’s efforts to tame inflation, suggesting there is more pain to come from rates rises.

5 things to start your day 

1) Sam Bankman-Fried charged with using stolen funds to make political donations | Prosecutors claim FTX founder spent more than $100m on political lobbying

2) YouGov threatens to quit London for New York as City exodus grows | Listing across the Atlantic would deal a fresh blow to the UK’s struggling stock market

3) Home counties residents receive least NHS funding in England, says IFS | Londoners received £312 more than their South East counterparts

4) Tesla reignites price war after Chinese carmaker vows to ‘demolish’ Western rivals | Electric carmaker slashes prices again amid intense competition

5) ‘Bob the builder’ tycoon’s holiday parks tumble into administration | Robert Bull was named among Britain’s wealthiest individuals earlier this year

What happened overnight 

Wall Street stocks closed higher on Monday ahead US retail sales data and earnings from large shopping chains later in the week, which will signal whether consumer spending can keep the economy out of a recession.

The broad-based S&P 500 added 0.6pc to 4,489.72, while the Dow Jones Industrial Average edged up 0.1pc to 35,307.63. The tech-rich Nasdaq Composite gained 1.1pc to 13,788.33.

In the bond market, the yield on the benchmark 10-year Treasury rose to 4.19pc from 4.16pc late Friday. The two-year Treasury yield, which moves more on expectations for the Fed, rose to 4.96pc from 4.90pc.

Asian shares climbed after an overnight rebound of US tech shares. Shares inched up higher in Australia and Japan, where earlier official data showed that the economy expanded more than expected, a signal of resilience.

The benchmark Nikkei 225 index climbed 0.84pc, or 270.43 points, to 32,330.34 and the broader Topix index rose 0.49pc, or 11.13 points, to 2,292.02.

Meanwhile, Hong Kong stocks opened lower, with the Hang Seng Index slipping 0.93pc, or 174.35 points, to 18,599.20.

The Shanghai Composite Index grew 0.07pc, or 2.13 points, to 3,180.56 and the Shenzhen Composite Index on China’s second exchange added 0.03pc, or 0.55 points, to 2,000.19.

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This notice was published: 2023-08-15 16:52:26

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