US inflation at 40-year high | Goldman cuts Russia ties
5pm: US inflation still rising
Wall Street stocks were in the red early in early trade as investors monitored news that ceasefire talks between Russia and Ukraine had stalled and digested data showing US inflation had hit a four-decade peak of 7.9% in a sign of worse to come as the cost of gas continue to increase.
Prices are rising at their fastest since 1982, and have not yet factored in the impact of rising commodities prices from Russia’s invasion of Ukraine.
Danni Hewson, AJ Bell financial analyst, said: “The war in Ukraine has changed the inflation conversation. Sticky high prices won’t just stubbornly hang around for a while, they’ll rise further.
“Food, energy, the basics of life will keep on getting more expensive and companies experiencing further supply price hikes will find they have little choice but to pass those increases on to their customers.”
In early trade the Dow Jones Industrial Average was down 0.64%, while the S&P 500 was 0.79% weaker and the Nasdaq Composite was 1.27% softer.
After another volatile day the FTSE 100 closed 91.63 points (1.27%) lower at 7,099.09.
The top gainer was commodities company Glencore which rose 6% to 498.15p.
Investors were barely moved by news that Marks & Spencer CEO Steve Rowe is stepping down. The shares were unchanged.
On AIM, the Scottish ready meals company Parsley Box was trading 3p (16.67%) higher at 21p after announcing a share issue to raise £7m.
The CAC 40 stock index in Paris closed down 2.8% and DAX 40 in Frankfurt ended down 2.9%.
… more follows
Banks cut ties with Russia
Goldman Sachs and Western Union have become the latest multinationals to cut ties with Russia following the invasion of Ukraine.
Goldman Sachs Group said it is closing all its operations in Russia, making it the first major Wall Street bank to exit the country.