By Patrick Munnelly, Market Analyst, Tickmill
The FTSE 100 winning streak came to an end today with the index down 10 points at 7898.77 at the close.
The driver for the downbeat mood amongst UK investors has principally derived from another surprise in UK inflation data. This comes on the heels of Tuesday’s employment numbers which pointed towards a fresh round of inflationary pressure in the jobs market.
Today’s UK inflation print has added further pressure on the Bank of England (BoE), coming in hotter than expected at 10.1% versus an expected 9.8% and sparked another flurry of hawkish bets from bond investors. Markets are now close to fully pricing a 25bps move by the BoE at their May meeting. This has led to equity investors pulling back on risk exposure.
The current round of inflation data leaves the UK as Western Europe’s poster child for inflation, leading other developed market economies with stubborn double digit inflation.
FTSE-100 biggest movers
Industrial miners who have been the recent bullish bet darlings have given back some gains today, notably Antofagasta LON:ANTO which shed 1.4% by the close. The miner’s copper production numbers failed to meet expectations for the March quarter, citing water availability and reduced ore grades as an ongoing issue.
Glencore LON:GLEN shares were also under pressure as investors expressed concerns around the firm’s ability to meet climate change commitments according to Reuters reporting. The stock gave up just under 1% by the close. In further Glencore developments, the business continues to aggressively pursue Canada’s Teck Resources. In an open letter to shareholders, Glencore has confirmed it will improve its all share bid of $22.5billion as the Teck board continue to encourage shareholders to reject Glencore’s advances, meaning the takeover could turn hostile.
On the positive side of today’s ledger British American Tobacco LON:BATS topped the table with shares rising over 3.4% on the session. Chairman Luc Jobin has affirmed fiscal year 2023 revenue, EPS and guidance at today’s AGM, further touting new product development in alternative consumption methods as the route to the businesses future success.
