Proactive Investors -
- FTSE 100 down 21 points at 7,630
- M&S falls despite strong Christmas trading
- Tesco (LON:TSCO) ups guidance, Whitbread (LON:WTB) backs outlook
US inflation stronger-than-expected
The US inflation number is out and it is hot.
Annual consumer price inflation rate picked up at a faster pace than expected, putting some cold water on the more optimistic hopes of an early rate cut.
According to the Bureau of Labor Statistics, the nation's yearly inflation rate picked up to 3.4% in December, from 3.1% in November. The reading was hotter than expected. According to FXStreet cited consensus, the annual inflation rate was forecast to only slightly heat up to 3.2%.
Annual core inflation also came in above forecast at 3.9%, against expectations of 3.8%, according to FXStreet. The measure, which excludes food and energy, eased from 4.0% in November.
On a monthly basis, consumer prices were 0.3% higher in December from November. They had risen 0.1% in November from October.
The FTSE 100 has moved lower on the news, down 22 points at 7.630.
Market Movers
Risers
Meta Platforms Inc (NASDAQ:META) closed at a 28-month high on the Nasdaq this Wednesday following a 365-basis-point rally after analysts started to reassess the stock in the age of artificial intelligence.
Shares in Windward Ltd (LON:WNWD) rose 15% to a new one-year high as it said continued demand for its artificial intelligence-powered services, which predict and manage maritime risk, mean it now expects results to be "comfortably ahead" of market forecasts.
Fallers
Shares in Marks and Spencer Group PLC (LON:MKS) fell by around 4.5% to top the FTSE 100 losers' board in the wake of the retailer's trading statement that failed to deliver an upgrade to full-year earnings guidance.
Shares in plantation group Dekel (LON:DKLD) shelled 22% of their value to a new low of 1.52p after it updated on a year when its cashew shelling operations were hit by teething problems, offsetting a strong performance for its palm oil business.
Red Sea tension escalate once more
Not helping markets is the situation in the Red Sea which has continued to escalate.
An oil tanker that was embroiled in a dispute between the US and Iran has been seized off the coast of Oman, in a raid that UK maritime authorities said was carried out by individuals in military-style uniforms.
The seizure comes as threats to shipping in the Middle East are already at the highest level in decades.
Speaking to the Financial Times, the chief executive of Maersk, the world's second-largest container shipping firm, warned it could take months to reopen the Red Sea route to trade.
Vincent Clerc, Maersk’s chief executive, told the Financial Times that the closure of the Red Sea to most shipping after a series of attacks was “brutal and dramatic” and that there were “no winners” as vessels are forced to take a lengthy and costly detour around South Africa instead.
“It’s unclear to us if we are talking about re-establishing safe passage into [the] Red Sea in a matter of days, weeks or months . . . It could potentially have quite significant consequences on global growth,” he added.
About 12% of global trade passes through the vital waterway.