UK stocks fall as retail sales tumble; HomeServe outperforms
The blue-chip FTSE 100 index and the domestically focused mid-cap FTSE 250 index declined 0.5% each by 07:15 GMT. Miners, banks and life insurers fell over 1% each, and were the biggest drags on the FTSE 100 index.
- Country:
- United Kingdom
UK shares fell on Friday, led by losses in financials and commodity stocks, as growing prospects of aggressive monetary policy tightening by central banks coupled with a sharp drop in retail sales, sparked concerns about economic growth. The blue-chip FTSE 100 index and the domestically focused mid-cap FTSE 250 index declined 0.5% each by 07:15 GMT.
Miners, banks and life insurers fell over 1% each, and were the biggest drags on the FTSE 100 index. British retail sales volumes slid by 1.4% in March from February, against a forecast of a 0.3% monthly fall, while separately a research showed consumer sentiment plunging to near all-time low in April, as surging inflation hurt consumer demand and households' confidence in the economy.
Broadly, Asian shares wobbled, following overnight Wall Street losses after Federal Reserve chair Jerome Powell said a half-point interest rate increase will be "on the table" when the Fed meets on May 3-4 to combat surging price pressures. Bank of England Governor Andrew Bailey said on Thursday the central bank was walking a tight line between tackling inflation and avoiding recession, with the strength of the labour market a key question right now.
On a bright spot, HomeServe Plc jumped 9% after it said it was in talks with Canada's Brookfield Asset Management for a possible offer for the home repair services firm.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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