UK's FTSE 100 pauses as hot inflation outweighs energy boost
EWU•The FTSE 100 was down 0.1% at 10,723.02 points as UK inflation rose to 3.5% in September, above expectations, reinforcing bets on a Bank of England rate hike. Energy stocks gained 1.1% as oil prices rose 1.2%.
1. Inflation weighs on shares
The FTSE 100 fell 0.1% to 10,723.02 points by 1022 GMT, while the FTSE 250 was little changed. UK inflation rose to 3.5% in September, above economists’ 3.4% forecast, and money markets priced in a 98.8% probability of a 25-basis-point Bank of England rate hike in November.
2. Energy stocks gain
Energy stocks rose 1.1% as oil prices gained 1.2% amid fears of supply disruptions linked to escalating Middle East tensions. BP and Shell were among the biggest boosts to the FTSE 100. Aberdeen Group fell 3.5% after flagging a slower-than-expected return to adviser-segment inflows, while Halfords dropped about 9% after reporting first-half results.
3. Borrowing exceeds forecasts
Government borrowing beat forecasts for a second straight month, pushing public debt above £3 trillion ahead of next week’s budget.
