Surging UK inflation figures and more volatility in Asian shares didn’t upset the apple cart too much on Wednesday morning as the FTSE 100 started more or less flat.
AJ Bell investment director Russ Mould said: “Weakness among airlines and Burberry, whose fortunes are closely tied to China, reflected a shift in investors’ concerns from the risks of the economy overheating to the recovery being knocked off course.
“This follows some weak Chinese economic data as it, like many countries across the world, wrestles with the more infectious Delta variant of Covid.
“Helping to keep the FTSE 100 afloat were some more stodgy defensive businesses such as catering giant Compass, consumer goods firm Reckitt Benckiser and tobacco maker Imperial Brands.”
CPI inflation hit 3.2% – the highest since January 2012 while Food prices rose by the largest amount since 2008. Eat Out to Help Out, petrol prices and second-hand car demand all drove prices up.