It’s another miserable day with rain soaking the UK, heightened tensions in the Middle East dominating the news, and stock markets falling around the world once again.
When there are only four stocks rising on the FTSE 100 and one of them is a boring old utility company, you know investors are feeling grumpy.
“The FTSE fell 1.6% to 6,893 as investors offloaded shares in oil producers and miners, perhaps taking profit in areas that have done well this year and locking in gains in case markets get even worse from here, ” says Russ Mould, investment director at AJ Bell.
“Yesterday’s US inflation shock fuelled the growing belief that central banks will have to take action sooner rather than later when it comes to raising interest rates. The world wanted economic recovery, but it appears to be happening too fast and the actions required to cool it down aren’t favourable to stock markets.
“The US tech-heavy Nasdaq index is in danger of seeing all of its year-to-date gains wiped out. It is now only trading 2.6% higher since the start of January and pre-market indicative prices would suggest it is in store for another red day today.”