The FTSE 100 has recently tumbled below 7,000 points. Commodity stocks have heavily weighed on the index while a bigger-than-expected jump in retail sales were disputed. The index is currently trading at 6971.3 which is a 0.63% decrease.
UK Data Outlook
Retail sales in the UK surged from 5.1% to 9.2% in April this year. Economists anticipated a 4.5% increase in the sales. According to official data released this week, the retail sales increased when non-essential shops were reopened after a long closure period due to the Corona virus pandemic. The surge in retail sales has however stoked fear among investors that the Central Bank might tighten its monetary policy.
The British pound was steady after a better-than-expected retails data was recorded in the United Kingdom. According to the data, the Sterling jumped to $1.4199 for the first time since February after the 9.2% increase in retail sales. The inflation in the Sterling pound saw the FTSE 100 take a nosedive. This is due to the possibility of having the monetary policy tightened earlier than expected.
According to the Office of National Statistics, an increase in the clothing, footwear and regulated gas bills prices has pushed the inflation a notch higher. Input prices also increased by 9.9% which was the highest since February 2017.
FTSE 100 Concerns
The index is down 0.33% with banks being among the biggest drags. Banks such as NatWest Group, HSBC Holdings, Prudential Plc, among others. This has been a big blow to the blue -chip index leading to its 1% decline.
The domestically focused mid-cap FTSE 250 index was also not left behind. The index has fell to 22,350.72 which is approximately a 0.18% decline.
Miners are among worst performers in the UK. Most mining companies have recorded a decline between 0.2% to 0.6%. Some of them include Rio Tinto, Glencore Plc and Anglo American Plc.