FTSE 100 ends lower as inflation rises, Asian stocks trade mixed as Sensex remains above 51,100

Inflation in the UK rose for the second straight month in June to 2.5 per cent

London stocks end lower as worries over inflation and Covid cases increases (PA Wire)

London’s FTSE 100 closed lower on Wednesday after UK’s inflation data worried investors and stronger pound weighed on multinational companies that earn profits outside.

The blue chip index ended 0.5 per cent lower, with the real estate sector falling the most. Heavyweights Unilever, GlaxoSmithKline and Diageo were also among the top drags as sterling rose after inflation jumped to its highest in almost three years.

The domestically focussed mid-cap index fell 0.8%, with travel stocks down 1.2 per cent over concerns on the effects of a jump in Covid-19 cases.

Inflation in the UK rose for the second straight month in June to 2.5 per cent, above the central bank’s inflation target, led by higher prices for food, fuel, second-hand cars, clothing, and footwear, official data showed on Wednesday.

Meanwhile, other European markets like DAX and CAC also remained flat.

Wall Street stocks ended mixed results on Wednesday as worries about inflation rise while US Fed reassured people of “powerful support” to the economy. The S&P 500 and Dow Jones Industrial Average rose 0.1 per cent while the Nasdaq Composite fell 0.2 per cent.

Shares in Asia-Pacific opened mixed on Thursday morning following global peers as investors also await the release of economic data in China. In Japan, the Nikkei 225 slipped 1.2 per cent. Hang Seng advanced 1.3 per cent while Mainland Chinese stocks were lower in early trade, but recovered to 0.3 per cent by noon.

Indian indices opened higher on Thursday boosted mainly by IT stocks after Infosys reported its June quarter earnings. Sensex was up by over a 100 points and stayed above 15,800.

Additional reporting by agencies