On an otherwise dull start to the day, the FTSE pulled back from yesterday’s levels as trading got underway.
The UK’s foray above 7,100 didn’t last long. After the bell it dropped half a percent, returning the FTSE to the 7,070 mark it has become so familiar with this June.
Rising inflation in China – up from 0.9% in April to 1.3% in May – can shoulder some of the blame, causing a flurry of losses in the FTSE’s mining sector. Most notably, Rio Tinto (LON:RIO), Anglo American (LON:AAL) and Antofagasta (LON:ANTO) were all down more than 1.2%.
That increase in the Chinese CPI readings could be a precursor to a sharp jump in the US figure tomorrow afternoon, even though forecasts have both the standard and core figures pulling back to 0.4% apiece.
Elsewhere there wasn’t a lot going on. Both the DAX and CAC sat on their hands as the session began, flat at 15,660 and 6,550 respectively.
At present the Dow Jones is set to echo that sentiment, with the futures indicating an unchanged open for the US index. That’d keep the Dow at 34,600, a level it has proven unwilling to stray from in the last few days. Perhaps investors are waiting until tomorrow’s inflation data is revealed.
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