UK stocks commenced the trading day on a weaker note, with the FTSE 100 registering a 0.5% decline in the opening session this morning. This drop was driven by a sell-off in the Chinese markets and the unveiling of details from US Federal Reserve discussions.
The downturn in Chinese share prices overnight contributed to the soft opening in the City, as the FTSE 100 reached a low point of 7,320.
Concurrently, the minutes from recent US Federal Reserve meetings, which were released overnight, indicated that central bank officials are still considering the possibility of additional interest rate hikes.
Amid persistently high inflation that significantly exceeds its set target, the Fed continues to express concern. Nonetheless, officials appear divided on the prudence of executing further increases in interest rates.
At this point, the FTSE 100 has wiped out all the gains that it had accrued earlier in the year and has shifted into negative territory. The index opened lower for the fifth day in a row, marking its most extended period of weakness in over a month.
