High inflation reading weighs on UK shares

UK markets remained in the red yesterday, despite the global rally initiated by lower-than-expected US producer prices data, hampered by Ocado's 16.8% fall due to an analyst downgrade and Vodafone's 7.9% decline after it lowered its guidance.

This morning, the FTSE 100 is struggling for direction, after the release of worse-than-expected UK inflation data. Higher energy and food bills lifted British inflation to a 41-year high in October, with prices soaring by 11.1% on a yearly basis, while 10.7% was expected in a Reuters consensus.

Meanwhile, oil & gas stocks rose due to higher crude prices, while defense stocks climbed after a missile hit Poland, with many reports that it was launched by Ukrainian air defense as it tried to intercept a Russian projectile.

Among stocks, Deliveroo advanced 1.2% after it said it ended its operations in Australia, while shares of Carnival fell 6.7% after the cruise operator a $1 billion stock sale.

 

Things to read today:

UK regulator may force social media sites to reveal algorithms (Financial Times)

Pay Me in Dollars: UK Employees Hit by Pound Weakness (Bloomberg)