British stocks plummeted as inflation fears grew high Tesco (TSCO) Stocks do little to mitigate the impact of a widespread sell-off on the FTSE 100.
The main market slipped 1.3% or 91 points in morning trade but gained some ground to close 73 points, or 1%, at 7,004 as investors grew nervous about the impact of labor shortages and supply chain disruptions on the cost of goods and services Services.
Prime Minister Boris Johnson had tried to allay fears about the rising cost of living by calling them “unfounded” in a Sky TV interview and explaining that UK supply chains were “incredibly smart and robust”.
Investors were not convinced, however, and heeded economists’ warnings that inflation could be tougher than the Bank of England announced as natural gas prices hit new record highs and US oil prices jumped to their highest level since 2014 in West Texas Intermediate is trading at $ 79.97 (£ 58.93) a barrel.
The pound fell 0.6% against the dollar to $ 1.3552 and UK shorter-term government bonds, or gilts, fell, with six-year yields rising 22 basis points to 0.479%.
Neil Wilson, an analyst at Markets.com, said: “Inflation, stagflation, supply chain problems, the US debt ceiling, an energy crisis as natural gas prices hit new records in Europe and the UK, tighter monetary policies from central banks, concerns over China’s real estate sector – it’s all about the stock markets this week and it’s not going to go away anytime soon. ‘
JD Sports (JD) lost 3.8% to £ 10.28 as a 5-for-1 stock split was proposed which “will bring the company’s share price down to a level where smaller trading of the shares would be more efficient and increase liquidity and marketability.” the stocks could improve “. Company shares ”.
Consumer cyclicals have been beaten up by the Premier Inn owner White bread (WTB) by 4.4% or 148 pence at £ 32.12.
Miners came under pressure Antofagasta (ANTO) fell 5.2% to £ 12.86.
Tesco was a big winner in blue chips, only six of which rose 6% or 15.5p this morning and traded at 268.5p after a better-than-expected six-month update was reported, with the Revenue rose 3% to £ 27.3 billion and underlying profits rose 41% to £ 1.5 billion.
The strong numbers have led the group to raise earnings forecasts and announce a £ 500m share buyback.
Hargreaves Lansdown analyst Sophie Lund-Yates said the huge size of the supermarket means “it will weather the supply chain crisis better than others” and sales have been boosted by “staykation trends”.
“A large-scale buyback shows that Tesco is confident of its prospects and ability to maintain high cash flow through the business,” she said.
The FTSE 250 followed its large-cap competitor south, losing 1.4% or 312 points to 22,419. Customer reviews website Trustpilot (TRST) decreased 7% to 352 pence.
Homeserve (HSV), the home maintenance and repair group, lost 3% to 832p after a double downgrade from Exane BNP Paribas, which reduced its recommendation from “outperform” to “underperform”.
Hiring company Side group (PAGE).
Secured Income Fund (SSIF) slipped 8.8%, or 2.3 pence, to 24 pence as the Liquidation Debt Fund announced it would likely require a further increase in provisions for a £ 5.6 million bad loan.
Apax Global Alpha (APAX) shrank 3.6%, or 8p, to 212p after selling $ 23 million.
UK equities fall as gas price hike fuels inflation fears