Lower UK retail sales renew recession fears

High inflation in the US, the IMF's poor outlook on global growth and a sharp decline in UK retail sales are impacting investor sentiment. The FTSE 100 was down 0.2% at 09am, weighed down by retailers.

Retail sales declined more than what was expected in August, as shoppers feel the pinch of rising prices.

They fell 1.6% month-on-month, the Office for National Statistics said, while analysts were expecting a decline of 0.5%.

Many investors believe this might signal that the UK is already in a recession. And things might get more complicated as the Bank of England will still have to raise interest rates aggressively to curb inflation. It is expected to hike rates by another 50 basis points next week, according to a Reuters poll.

 

Things to read today:

US Yield Curve Set to Invert by Most in 40 Years, Allspring Says (Bloomberg)

Putin acknowledges Chinese “concerns” over Ukraine (Financial Times)

Will There Always Be an England? (WSJ)