Wednesday,12 February 2025 16:45:05

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Wednesday,12 February 2025 at 16:40

UK and European markets are mixed as global markets assessed a hotter-than-expected inflation reading in the U.S.

The U.S. consumer price index gained 0.5% in January, taking the annual inflation rate to 3%, above the Dow Jones estimate of 2.9%. The core CPI, excluding food and energy prices, was also higher than forecast.

US stocks had a broad sell-off ensued following the release of CPI. Shares of most mega-cap technology stocks, including Amazon, Microsoft and Alphabet, declined. Consumer shares and bank stocks at risk of slower spending and a weaker economy also retreated.

Gold prices slipped after a rise in U.S. consumer prices boosted the likelihood of the Federal Reserve maintaining higher interest rates, but safe-haven bullion pared much of the earlier losses as trade war concerns kept investors on the edge.

Oil prices fell as an industry report showed an increase in U.S. crude stockpiles and tariff worries weighed on sentiment, paring back three days of gains driven by increasing Middle East tensions and intensifying sanctions.

In equity markets, housebuilder Barratt Redrow surged to the top of the FTSE 100 after saying full-year earnings were set to be at the upper end of expectations following a jump in interim profits.

The company posted pre-tax profit of £117.2m, up 23% and lifted its dividend by a quarter to 5.5p a share.

Consensus estimates are for 2025 adjusted pre-tax profit of £542m, with a range of £506m to £588m.

Markets

At the close

FTSE 100 8,804 +0.34%

FTSE 250 20,883 (-0.17%)

DAX 22,141 +0.47%

At 16:42

Dow Jones 44,224 (-0.83%)

S&P 500 6,033 (-0.58%)

NASDAQ 19,525 (-0.60%)

Fixed Income

UK 10-YR YIELD 4.554

Exchange Rates

GBP/USD 1.241

GBP/EUR 1.197

Commodities

Gold $2,896 (-0.04%)

Brent $75.86 (-1.21%)

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.