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9.30pm: US inflation

Wall Street saw its steepest fall in two years after US inflation rose higher than forecast. The Dow Jones Industrial Average plunged 3.94%, the S&P 500 lost 4.2%, and the Nasdaq Composite dropped 5.16%.

Prices rose 8.3%, above the forecast of 8.1%, and make a 75bps rise in interest rates at the next meeting of the Federal Reserve almost certain.

The figure was down from 8.5% in July and a cyclical peak of 9.1% in June, suggesting the annual trend is peaking, at least in the near term, says Daniel Casali, chief investment strategist at Evelyn Partners.

The FTSE 100 closed 87.17 points lower at 7,385.86.

7am: Jobless lower, wage growth outpaced

The UK unemployment rate has dropped to its lowest since 1974 as more people dropped out of the workforce. Full story here

7am: Ocado

UK online grocery firm Ocado Retail said it expected a small fall in annual sales as customers started to tighten their belts amid the cost-of-living crisis.

The joint venture between Ocado Group and retailer Marks & Spencer, also said it now expected close to break-even core earnings.

Third-quarter sales rose 2.7% to £532m as the firm tipped “even stronger growth” in Q4. Active customer numbers grew 23% year-on-year to 946,000, driving an increase in average orders per week of 10.7%.

7am: Parsley Box slides further

Parsley Box, the Scottish ready meals service run by Chris van der Kuyl and Kevin Dorren, saw revenue plunge by 32% as online demand seen during the pandemic fell away sharply.

New customer revenue was down to a third of the corresponding period as marketing acquisition spend was cut back in the first quarter whilst new funds were sought.

However, the loss before tax came in lower at £2.77m against £5.4m. Full story here

7am: Smart Metering Systems

The Scotland-based meter installer said revenue for the half year was up 21% to £62.7m (H1 2021: £51.7m). Full story here

7am: Mattioli Woods

The specialist wealth and asset management business said adjusted EBITDA increased 88.4% to £32.6m (2021: £17.3m) on a 72.8% rise in revenue to £108.2m (2021: £62.6m) for the year to the end of May.

Recurring revenues represent 86.8% (2021: 92.7%) of total revenue, reflecting contributions from Maven Capital Partners and increased initial client fees.

Gross discretionary AuM rose 25.8% to £5.1bn (2021: £4.1bn), with net inflows of over £341m in the year

There is a proposed final dividend of 17.8p (2021: 13.5p), giving a total dividend rise of 24.3% to 26.1p (2021: 21.0p)

Global markets

UK unemployment US consumer price index data will be released today. US inflation is seen as softening to 8.1% in August from 8.5% in July. It comes ahead of the Federal Reserve’s meeting on Thursday next week, when the US central bank is expected to carry out its third consecutive 75 basis point interest rate hike.

Mike Ashley’s Frasers Group returns to the FTSE 100, replacing defence firm Meggitt which was delisted following its acquisition by US rival Parker-Hannifin.

Frasers, under its former name Sports Direct, fell out of the FTSE 100 in 2016 as a result of poor trading and controversial claims over its working conditions.

The Frasers Group share price has been bucking the retail trend, gaining 28% in the past 12 months.

US share prices edged on Monday. The S&P 500 close with a 1.1% gain, while the Nasdaq ended the session 1.3% ahead. The Dow Jones finished 0.7% higher.