UK market suffers brutal sell-off, as BoE raises interest rates again

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UK market suffers brutal sell-off, as BoE raises interest rates again

 UK market suffers brutal sell-off, as BoE raises interest rates again
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UK Market News: The UK stock market suffered a sharp sell-off on Thursday after the Bank of England’s rate hike announcement, with the blue-chip FTSE 100 index losing over 2.5%. The Bank of England (BOE) has raised interest rates for the fifth time in a row to a 13-year high of 1.25%, as it now expects inflation to hit 11% this autumn when energy bills rise again.

ASOS Plc (LON: ASC): The share of the online fashion and cosmetic retailer Asos Plc was down by around 30%, with a day’s low of GBX 798.00. The online retailer has cut its full-year profit guidance because of the impact of inflation on consumer behaviour.

CRH Plc (LON: CRH): The share of a building materials business, CRH Plc, fell by 2.6%, with a day’s low of GBX 2,880.00. The company announced that it has entered into arrangements with UBS A.G., London Branch, to repurchase shares on the company’s behalf for up to US$300 million.

BHP Group Limited (LON: BHP): The share of multinational mining, metals, and petroleum company BHP Group was down by 3.31%, with a day’s low of GBX 2,443.00. The company said that it had been unable to sell its New South Wales Energy Coal (NSWEC) thermal coal unit and now will operate it for another eight years before shutting it down.

US Markets: The US market is likely to get a negative start, as indicated by the futures indices. S&P 500 future was down by 111.12 points or 2.97% at 3,677.91, while the Dow Jones 30 futures was down by 2.39% or 732.61 points at 29,935.92. The technology-heavy index Nasdaq Composite future was down by 3.45% at 11,182.75 (At the time of writing – 10:09 AM ET).

US Market News:

The share of the contract electronics manufacturer, Jabil (JBL) was up by 1.2% in the premarket trading session after beating top and bottom-line estimates in the latest quarter. The company generated an adjusted US$1.72 per share, 10 cents above estimates.

The share of the American automotive and clean energy company Tesla (TSLA) was down by 3.8% in the premarket trading session after media reported that the company had increased prices on its US models amid a jump in the price of raw materials and supply chain snags. 

European Indices Performance (at the time of writing):

European Indices Performance

FTSE 100 Index One Year Performance (as on 16 June 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 Glencore plc (GLEN).

Top 3 Sectors traded in red*: Energy (-5.51%), Basic material (-3.56%), Consumer Cyclicals (-3.50%).

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

London Stock Exchange stock performance

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $116.27/barrel and $113.09/barrel, respectively.

Gold Price*: Gold price hovered at around US$ 1,819 per ounce, down by 0.03% against the prior day’s closing.

Currency Rates*: GBP to USD: 1.2148; EUR to USD: 1.0400.

Bond Yields*: US 10-Year Treasury yield: 3.495%; UK 10-Year Government Bond yield: 2.7525%.

*At the time of writing

ASOS Plc (LON: ASC): The share of the online fashion and cosmetic retailer Asos Plc was down by around 30%, with a day’s low of GBX 798.00. The online retailer has cut its full-year profit guidance because of the impact of inflation on consumer behaviour.

CRH Plc (LON: CRH): The share of a building materials business, CRH Plc, fell by 2.6%, with a day’s low of GBX 2,880.00. The company announced that it has entered into arrangements with UBS A.G., London Branch, to repurchase shares on the company’s behalf for up to US$300 million.

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