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As inflation remains unchanged...

FTSE slips again after Fed’s calming words

London Stock ExchangeShares in London wobbled further at the end of today’s session after two steep falls.

The FTSE 100 steadied for most of the day but was down 35.27 points or 0.53% at 6,665.3 at the close.

Economic news was light, with the UK inflation rate, as measured by the Consumer Prices Index (CPI), unchanged from July at 0.6%.

Rising food prices and air fares pushed prices higher, according to the Office for National Statistics, partly offset by cheaper prices for hotel rooms.

Greater focus was on the US where Wall Street rallied overnight after an official said the Federal Reserve should avoid removing support for the US economy too quickly, suggesting interest rates will not rise this month.

Comments by Fed governor Lael Brainard gave some support to global markets which fell amid concern that central bankers had reached the limit of their stimulus measures.

Ms Brainard has been one of the Fed’s biggest defenders of low interest rate policy, arguing the US is vulnerable to economic uncertainty in Asia and Europe.

On Monday, the FTSE 100 index was down 1.5% or 103 points in early trade in line with European markets. They recovered some ground to close down 76.05 points of 1.12% at 6,700.9.

Among today’s risers was sports retailer JD Sports which rose as much as 10% to a record high after a jump in first half revenue and profit.

M&S was a big faller in the previous session,  down 5.06% after the high street retailer revealed that Laura Wade-Gery not be returning to her position as executive director, multi-channel, following completion of her maternity leave at the age of 50. The shares settled today with a 0.6% rise

Ms Wade-Gery joined M&S from Tesco in 2011 and was first tasked with the £150m overhaul of the M&S website.

She will leave the company at the end of September. She will receive monthly payments of up to a maximum of eight months’ salary and benefits, subject to mitigation but will not be eligible to participate in the Annual Bonus or Performance Share Plan awards for 2016/17.

 

 

 



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