UK market slips into red as inflation hits 40-year high

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UK market slips into red as inflation hits 40-year high

 UK market slips into red as inflation hits 40-year high
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UK Market News: The UK stock market made a sluggish start on Monday, with the blue-chip FTSE 100 index losing around a quarter per cent over inflation worries. According to the Office for National Statistics (ONS), inflation in the UK jumped to a 40-year high of 9% in April after cost-of-living pressures were fuelled by a 54% rise in the energy price cap at the start of the month.

Ocado Group Plc (LON: OCDO): The shares of the technology-lead global software and robotics platform business Ocado Plc, fell by around 7%, with a day’s low of GBX730.60. The company warned that the rising cost of raw materials, food, and energy is further adding cost headwinds to the grocery sector.

Experian Plc (LON: EXPN): The share of the multinational consumer credit reporting company Experian Plc fell by almost 6.5%, with a day’s low of GBX2,479.00. The company reported a 17% increase in revenue to US$6.3 billion, from US$5.3 billion in FY2021. Despite the uncertain economic condition, it expects revenue growth in the range of 7-9% for the coming year and a modest margin improvement.

Premier Foods Plc (LON: PFD): The share of the maker of Mr Kipling cakes and OXO cubes, Premier Foods Plc, rose by around 13%, with a day’s high of GBX 124.80. The company said that it would raise the prices of its products to tackle the rising cost of dairy, wheat, and fuel. 

US Markets: The US market is likely to get another strong start, as suggested by the futures indices. S&P 500 future was up by 80.84 points or 2.02% at 4,088.85, while the Dow Jones 30 futures was up by 1.34% or 431.17 points at 32,654.59. The technology-heavy index Nasdaq Composite future was up by 2.62% at 12,564.10 (At the time of writing – 8:50 AM ET).

US Market News:

The shares of the American big box department store chain, Target (TGT) plummeted by 22.1% in the premarket trading session after the company reported an adjusted quarterly profit of US$2.19 per share, below US$3.07 of estimate. However, revenue and comparable-store sales beat forecast; higher costs ate into target’s bottom line.

The shares of the American retail company specializing in home improvement, Lowe’s (LOW), fell by 2.9% in the premarket trading session after the company reported a fall in quarterly comparable-store sales more than expected. The retailer beat bottom-line estimates by 29 cents with quarterly earnings of US$3.51 per share, and revenue came in slightly below Steet forecasts.

European Indices Performance (at the time of writing):

 European Indices Performance

FTSE 100 Index One Year Performance (as on 18 May 2022)

1 Year FTSE 100 Chart

 (Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), Vodafone Group Plc (VOD) and Rolls-Royce Holdings Plc (RR.).

Top 3 Sectors traded in green*: Energy (2.00%), Utilities (0.54%) and Real Estate (0.06%).

Top 3 Sectors traded in red*: Industrial (-1.54%), Consumer Cyclicals (-1.51%), Healthcare (-1.36%)

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

London Stock Exchange Stocks Performance

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $113.89/barrel and $112.09/barrel, respectively.

Gold Price*: Gold price was quoted at US$ 1,808.33 per ounce, down by 0.59% against the prior day’s closing.

Currency Rates*: GBP to USD: 1.2430; EUR to USD: 1.0526.

Bond Yields*: US 10-Year Treasury yield: 2.995%; UK 10-Year Government Bond yield: 1.9065%.

*At the time of writing

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