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Highlights
- The UK reported surge in inflation to 4.2% in October 2021, which was the highest cost of living in the country since December 2011.
- As per market experts, the rising inflation in the country may force the central bank to act by increasing interest rates to curb inflation.
Inflation in the UK surged to 4.2% in October 2021, which was the highest level of cost of living in the country since December 2011. The rise in inflation was mainly due to surging energy prices in the UK driven by increases in crude oil rates in the international market.
Like the UK economy, inflation in the Eurozone also rose to 13 years high at 4.1% and was well above the consensus forecast of 3.7%. The surge in fuel prices in the past month was one of the primary reasons for inflation.
The crude oil prices rose close to 60% in 2021 to trade near USD 80 per barrel, leading to a rise in inflation in oil-importing countries like the UK and European countries. The economic recovery after the Covid-19 pandemic has led to higher demand for fuel.
As per market experts, the rising inflation in the country may force the central bank to act by increasing interest rates to curb inflation. As a result, investors and traders can expect cautious trading ahead of the Bank of England next policy meeting, which is on 16 December 2021.
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Image description: Stock in News
Let us look at 3 FTSE listed stocks that are in the news today:
Novacyt S.A (LON: NCYT)
The company operates in the development and manufacturing of medical equipment like diagnostic testing products to detect cancer and other infectious diseases. It has business operations in over 130 countries.
The company reported revenue of £54.0 million in the first six months of 2021, while its gross profit was £38 million. Its EBITDA was £23.2 million, a rise of 43% during the period. The company returned to profitability in the first half, driven by the successful launch of Covid-19 test kits. Also, the company secured new contracts from WHO and UNICEF to supply the Covid-19 products. The company expects its underlying business will continue to perform well, generating growth in gross profit and EBITDA in upcoming quarters.
Novacyt S.A last close was at GBX 281 on 17 November 2021, with a market cap of £169.29 million.
SSE Plc (LON: SSE)
The company operates in the electricity generation and distribution business providing electricity to over 3.8 million homes in England and Scotland. It generates power from different sources like coal, gas, water, and other fuels.
For the six months to September 2021, the company reported operating profits of £376.8 million, a rise of 15%, while its profit before tax rose by 30% at £174.2 million. It reported improved performance across its different business segments during the period. Also, SSE Plc is taking concrete steps to reach net-zero emissions, like investing more in clean energy. It has recently invested in an offshore wind farm in Japan and has amalgamated two of its wind farms with a potential capacity of 4.1 GW.
SSE Plc’s last close was at GBX 1,587 on 17 November 2021, with a market cap of £17,669 million.
Sage Group Plc (LON: SGE)
The company operates in the technology sector, offering various services like cloud-based financial management platforms, cloud HR, accounting software and many other software to small and medium businesses.
FTSE100 listed company reported decent performance in the financial year ended 30 September 2021. Its organic revenue rose by 3% at £1,778 million, while the recurring revenue was £1,637 million, a rise of 5% during the period. Its business cloud and cloud-native solution continue to support revenue growth. The company has given positive guidance for the next financial year and expects 8% to 9% growth in recurring revenue supported mainly by the Sage business cloud and cloud-native. Also, the operating margin is expected to trend upside in the upcoming year due to the scaling of the business divisions.
Sage Group Plc last close was at GBX 800 on 17 November 2021, with a market cap of £7,474.7 million.
