The FTSE 100 started the day flat on Tuesday after mixed trading in Asia and a late sting in the tail on Wall Street overnight.
AJ Bell investment director Russ Mould said: “The optimism which had built up in the wake of last week’s weaker than expected inflation number was punctured by comments from a US Federal Reserve official suggesting investors had, not for the first time, got ahead of themselves in expecting a pivot on rates.
“News that even corporate titan Amazon is having to tighten its belt with job cuts also helped to sour sentiment.
“The latest UK jobs figures demonstrated some resilience with unemployment remaining low, though notably there are more working age people quitting the world of work entirely and the number of working days lost to strikes hit a decade high.
“This has implications for the country’s productivity as the Treasury looks to plug a big gap in the public finances.”
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