The FTSE 100 and European stocks had mixed trading day on Tuesday, with the UK’s benchmark in negative territory following news that the UK unemployment rate was higher than expected.
On Wall Street, stocks were higher on hopes that inflation may have peaked.
The produce price index, a measure of wholesale inflation, rose 0.2% for the month of October, versus the consensus estimate for a 0.4% increase. Investors are seeing this as a sign of inflationary pressure abating last month, sparking a sharp rally.
🇺🇸PPI cooler than expected...
🟢Headline: +0.2% m/m
🟢Core: +0.2% m/m
▶️Energy +2.7% (⛽️)
▶️Core -0.1%: first⬇️since May'20✅
✅Services -0.1%: first⬇️since Nov'20
🔥PPI 8.0% y/y (-0.4pt)
🔥Core 5.4% y/y (-0.2pt) pic.twitter.com/FPR3bLTG2H
— Gregory Daco (@GregDaco) November 15, 2022
The FTSE 100 (^FTSE) struggled for direction the entire session and closed in the red, losing 0.38% to close at 7,357, while the CAC (^FCHI) in Paris advanced 0.33% to 6,630 points. In Germany, the DAX (^GDAXI) gained 0.37% to 14,366.
Vodafone (VOD.L) tumbled 7.96% after the mobile operator lowered its full year earnings forecast and announced plans for a further €1bn of cost savings by 2026.
The telecommunications giant warned that the global macroeconomic climate has worsened in the face of rising energy costs and broader inflation. It has lowered its core earnings guidance, and its predictions for free cash flow.
Sterling (GBPUSD=X) gained 1.14% against the dollar on Tuesday morning making a pound worth a little over $1.18. The currency is also trading strongly against the euro, up 0.17%, making a euro worth 88p.
Meanwhile, Brent crude (BZ=F) has retreated to $92/barrel.
In Asia, Tokyo’s Nikkei 225 (^N225) climbed 0.10% to finish at 27,990 while the Hang Seng (^HSI) in Hong Kong climbed 3.78% to 18,285. The Shanghai Composite (000001.SS) also made gains, advancing 1.64% to 3,134 points.
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