FTSE 100 turns lower as inflation pushes UK debt to costs to record high

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FTSE 100 turns lower as inflation pushes UK debt to costs to record high

 FTSE 100 turns lower as inflation pushes UK debt to costs to record high
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UK Market News: The UK stock market witnessed fresh strain on Thursday after ONS showed that the government borrowed £14 billion in May, significantly higher than economists' forecast. The FTSE 100 index shed over 0.50%, touching a low of 7,015.06. The data also showed that the interest on government debt during the month hit a record high of £7.6 billion, the highest for any May since the records began. The interest payment is 50% higher than the £5.1 billion forecast by the Office for Budget Responsibility.

Ocado Group Plc (LON: OCDO): Shares of the grocery technology provider climbed 3.42% on Thursday. The shares started the day on a high note, touching an intra-day high of GBX 861.00. The uptrend continues two days after the company announced that it has raised £875 million to fund future growth plans.

Berkeley Group Holdings Plc (LON: BKG): Shares of the real estate developer rose by 2.72%, touching the day's high of GBX 3,791.00. The company on Thursday posted a boost in its profits from the rising housing demand, saying that the profits are expected to be higher in the coming months.

BT Group Plc (LON: BT.A): The British multinational telecom firm's shares increased by over 2% to touch the day's high of GBX 185.95. The company has partnered with global tech company Dynatrace to upgrade its service management stack for self-healing systems by 2025.

US Markets: The US markets are expected to move up on Thursday, as indicated by the future indices. The S&P 500 was up by 0.62% or 23.24 points at 3,783.13. The Dow Jones 30 futures was up by 196.67 points or 0.65% at 30,679.80, while the tech-dominated Nasdaq Composite future was up by 0.38% at 11,095.08 (At the time of writing – 9:47 am ET).

US Market News:

Shares of consulting firm Accenture (ACN) slipped 3.3% in the premarket trading session. The company's quarterly revenue exceeded the forecasts, but the earnings took a hit due to the company's exit from Russia. Accenture has raised its revenue projection for the year but slashed the top end of the earnings forecast.

Restaurant operator Darden Restaurants (DRI) added 3.4% in the premarket trading session. The firm posted higher than expected profits and revenue for the fourth quarter and fiscal year ended May 29, 2022. Its total sales rose 14.2% to $2.60 billion, while the net earnings from continuing operations were $282 million. The company also raised its quarterly dividend by 10% and gave a nod to a new buyback program worth $1 billion.

European Indices Performance (at the time of writing)

FTSE 100 Index One Year Performance (as of 23 June 2022)

 

 (Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), Vodafone Group plc (VOD), Shell plc (SHEL)

Top 3 Sectors traded in green*: Healthcare (0.65%)

Top 3 Sectors traded in red*: Energy (-0.63%), Healthcare (-0.40%), Financials (-0.54%)

London Stock Exchange: Stocks Performance (at the time of writing)

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Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $111.38/barrel and $105.72/barrel, respectively.

Gold Price*: Gold price was hovering at around US$ 1,845.20 per ounce, up by 0.36% against the prior day's closing.

Currency Rates*: GBP to USD: 1.2253; EUR to USD: 1.0516.

Bond Yields*: US 10-Year Treasury yield: 3.026%; UK 10-Year Government Bond yield: 2.3075%.

*At the time of writing

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