The FTSE 100 has plunged to its lowest point in nine months, following disappointing retail sales figures released earlier on Friday.
This prominent UK stock index dropped significantly, declining as much as 1.25% to 7,218.61, marking its lowest level since November 3, 2022.
This is part of a steep and sustained downturn; over the last six trading sessions, the FTSE 100 has lost almost 400 points.
Concurrently, the domestically-oriented FTSE 250 midcap index has experienced a substantial decrease, falling as much as 1.88% to 18,010.48.
This decline was triggered after British retailers reported a larger-than-anticipated drop in sales for July. Unfavourable weather conditions and enduring inflation led budget-conscious consumers to tighten their spending.
Retail sales volumes in the UK sharply contracted by 1.2% last month, a decline that is double the 0.6% drop that analysts had predicted.
These recent figures are likely to intensify the pressure on the Bank of England to tackle inflation. Data on the consumer price index and wage growth, released earlier this week, indicate that interest rates may need to stay elevated for an extended period.
The FTSE 100’s performance is further burdened by escalating concerns regarding China’s economic challenges, which are exerting a downward force on stock markets globally.
In the international context, Wall Street’s S&P 500 has declined 0.44%, France’s CAC 40 is down by 1.02%, and Germany’s DAX index has decreased by 1.5%.
