An overnight sell-off in the US has soured sentiment across Europe this morning.
For once bad news really was bad news, rather than a positive because of the implications it might have for interest rates. Weak US retail sales suggested consumers’ resilience may have been pushed beyond breaking point.
AJ Bell investment director Russ Mould said: “This undermined the hypothesis of a ‘soft landing’ for the US economy with inflation easing before rates have inflicted too much pain.
“News that Microsoft is planning to cut 10,000 jobs and a series of weak earnings reports also didn’t help the market’s mood.
“On the UK market, Dunelm’s value-focused homewares proposition is still resonating with shoppers. A beefed-up online operation and a quality, inexpensive range of goods have helped drive a remarkable renaissance at Dunelm in recent years.
“Since current CEO Nick Wilkinson took the helm nearly five years ago the shares have advanced more than 60% compared with a 3.5% increase for the FTSE All-Share over the same timeframe – all this despite considerable intervening volatility in the wider retail sector.”