Inflation plunges | “slow” retail sales
REFRESH THE PAGE FOR UPDATES
9:30 am: Falling market over interest rate talks
The FTSE 100 fell as fears grew that the Bank of England would hike interest rates as early as next month, despite an unexpected slowdown in inflation (see below).
Meal delivery company Deliveroo jumped 2.7% after raising its forecast (see below).
Danni Hewson, AJ Bell Financial Analyst, says: “The FTSE 100 started a little lower on Wednesday after UK inflation moderated to just below expectations.
“However, these numbers are already firmly in the rear view mirror and likely bear little comparison to current realities given the surge in energy prices and growing supply chain problems seen in October.
“Online Notice Keeping Trustpilot received a poor rating from investors after several major shareholders sold off part of their holdings at a reduced price.
“A cybersecurity company AvastThe latest streak of solid figures from ‘s may spark increased regret over its impending exit from the UK market, following its merger with US rival NortonLifeLock. “
7h: Inflation is falling
Price hikes eased slightly in September as the economy continued to reopen, official figures show.
The increase in the cost of living, as measured by the consumer price index, fell to 3.1% in September, from 3.2% in August.
Rising transport prices were the main factor driving up prices.
It comes after the Bank of England indicated that interest rates may have to rise to control inflation.
The Office for National Statistics (ONS) said the inflation rate fell slightly last month, as higher prices in restaurants and cafes in August were largely due to comparisons with August 2020, when the Eat Out to Help Out program was underway.
Retail sales in Scotland continue to grow, although they are at their lowest growth rate since March 2021, when Scotland was under substantial restrictions, according to figures from the Scottish Retail Consortium.
Total sales in Scotland increased 1.3% in September compared to September 2020. However, on a two-year basis, total retail sales continue to be below pre-pandemic levels, with sales down 9.1% compared to September 2019.
Ewan MacDonald-Russell, head of policy and external affairs at the CBC, said: “Sluggish sales in September put an end to retailers’ hopes of a rebound after restrictions with the lowest numbers since March.
Scottish sales only exceeded last year’s dreadful numbers and were down 9.1% from pre-pandemic trade. Alarm bells are ringing louder than Scottish store checkouts as we are entering the crucial period of Christmas exchanges.
7h: Deliveroo is making “good progress”
Food delivery service Deliveroo has announced an expansion of its partnerships with Amazon and Morrisons.
In a third quarter statement, Will Shu, Founder and CEO, said, “We continued to make good progress in executing our strategy, which translated into strong performance in the third quarter.
“This quarter, we partnered with Amazon to offer their Prime customers in the UK and Ireland access to our Deliveroo Plus subscription program.
“We have also successfully launched a new rapid grocery service, Deliveroo Hop, in partnership with Morrisons. These are just two examples of innovations introduced this quarter that consistently improve our value proposition to consumers.
“While we are aware of the current and potential macroeconomic disruptions and uncertainties, we expect further strong performance for the remainder of the year and we are increasing our growth forecast for the full year of GTV.
“We remain excited about the opportunity ahead and our plans to deliver better value to our consumers, help our partner restaurants and grocery stores grow and provide new opportunities for cyclists. “
Asian stocks rose and long-term US bond yields peaked in five months amid growing optimism about the global economy and corporate earnings.
The Nikkei 225 the index in Tokyo rose 0.1%. In China, the Shanghai Composite was down 0.1%, while the Hang Seng the index in Hong Kong climbed 1.3%.
Wall Street ended up, with the Dow Jones Industrial Average adding 0.6%, while the S&P 500 and Nasdaq Composite were 0.7% higher.
Oil price eased slightly in Asia but remained near multi-year peaks as the energy supply crisis persisted around the world.
Brent oil was trading at $ 84.58 a barrel, up from $ 84.64 on Tuesday night
U.S. crude futures were trading at $ 82.65 a barrel, down 0.4% on the day but close to Monday’s high of $ 83.18, its highest level since 2014.