Amid higher-than-expected inflation figures, UK stocks saw a decline, raising worries that interest rates might stay elevated for a prolonged period.
The FTSE 100 experienced a dip of up to 0.6pc, and the mid-cap index saw a decrease of up to 0.8pc.
The #FTSE100 experienced a slight decline following the steady inflation rate of 6.7pc in September, influenced by escalating fuel costs. The #UK's leading blue-chip index remained nearly stable at 7,673.05, while the #FTSE250 dropped by 0.1pc, settling at 17,678.90. https://t.co/ctnWuH2eoR pic.twitter.com/jBfvZX9XW0
— Share_Talk ™ (@Share_Talk) October 18, 2023
Sterling edged up by 0.1pc as September’s inflation rate held steady at 6.7pc.
Investors gravitated towards safe-haven assets like gold, pushing precious metal miners up by as much as 0.8pc. This shift came in the wake of a tragic explosion at a Gaza hospital, amplifying concerns over the intensifying conflict in the Middle East.
The crucial oil and gas sector grew by 0.5pc due to rising apprehensions about potential interruptions in the region’s oil supply due to the conflict.
In other news, Whitbread shares surged 3.5pc, placing it at the forefront of the FTSE 100 after the hotel chain unveiled a £300m share repurchase plan, succeeding a 44pc spike in half-year profits.
On the flip side, Barratt Developments, the UK’s premier homebuilder, dropped to the base of the blue-chip index. They held back from giving a full-year profit prediction due to a volatile outlook in a tough mortgage market, resulting in a 2.1pc decline in their stock.
