Home Business NewsBusiness FTSE 100 dips after UK inflation retreat

FTSE 100 dips after UK inflation retreat

by LLB Editor
18th Aug 21 10:32 am

The FTSE 100 started Wednesday modestly lower as UK inflation eased back more than anticipated, says AJ Bell investment director Russ Mould.

“This is good news for those fretting about rising prices but potentially raises some questions about the strength of the UK economic recovery.

“Mining firm BHP proved to be a drag on the index after confirmation yesterday that its corporate restructuring would mean an exit from the FTSE 100 as the primary listing for the shares goes to Australia.

“This move will mean products which track the FTSE 100 and funds with investment policies barring them from buying shares with their main listing overseas will have to exit their shareholding.

“The turmoil in Afghanistan and continuing threat posed by the Delta variant of Covid is seeing funds flow into the dollar – a traditional safe haven – with Chinese and US equities both falling overnight.”

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