London open: Stocks fall as investors eye US inflation reading

(Sharecast News) - London stocks fell in early trade on Friday following heavy losses on Wall Street, as investors eyed the latest US inflation data. At 0845 BST, the FTSE 100 was down 0.9% at 7,407.94.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "Inflation is what is scaring the horses on financial markets and equities in Europe are galloping lower after another pretty wild ride for US equities.

"Eyes are locked firmly on the release of the US Consumer Price Index due out later, and it's the anticipation of the bleak scenario which this data is set to reveal which is causing this fresh jump of anxiety. Prices are expected to show a year-on-year increase of 8.3%, the highest in almost 40 years and there are expectations the Federal Reserve may have to pull more tightly on the reins to slow it down. Signs that prices had spiralled even higher last month, are likely to set off a fresh round of selling, but a lower than expected reading could prompt a wave of buying which would top off a volatile week for stocks.

"The European Central Bank's decision to raise interest rates in July for the first time in 11 years yesterday was a fresh jolt for financial markets and is another sign that the cheap money journey is hurtling abruptly to an end."

On home turf, banks were in focus after the Bank of England said the UK's top banks were no longer "too big to fail", meaning that none would require a bailout in the event of a crisis. However, it did find shortcomings at Lloyds, HSBC and Standard Chartered over resolution plans. Also included in the review were Barclays, NatWest, Santander UK, Virgin Money and Nationwide.

The BoE said: "The Bank's assessment of resolvability shows that even if a major UK bank were to require resolution, customers would be able to keep accessing their accounts and business services as normal."

Elsewhere, GlaxoSmithKline gained ground after saying that its vaccine for respiratory syncytial virus had shown "statistically significant and clinically meaningful efficacy" in adults aged 60 years and above in a phase 3 trial. The company said the primary endpoint of the trial was "exceeded with no unexpected safety concerns observed" and would now start talks with regulators to start immediately with anticipated regulatory submissions in the second half of the year.

Outside the FTSE 350, ProCook shares tumbled nearly 40% after the kitchenware retailer warned on profits as consumers tighten their belts.

Market Movers

FTSE 100 (UKX) 7,407.94 -0.91% FTSE 250 (MCX) 19,914.68 -0.79% techMARK (TASX) 4,331.75 -0.31%

FTSE 100 - Risers

GSK (GSK) 1,749.00p 2.29% Aveva Group (AVV) 2,394.00p 0.67% Sainsbury (J) (SBRY) 210.80p 0.67% Tesco (TSCO) 253.60p 0.56% Persimmon (PSN) 2,203.00p 0.46% Hargreaves Lansdown (HL.) 814.80p 0.42% Standard Chartered (STAN) 597.60p 0.13% NATWEST GROUP PLC ORD 100P (NWG) 228.50p 0.09% Avast (AVST) 482.10p 0.08% Meggitt (MGGT) 772.80p 0.08%

FTSE 100 - Fallers

Scottish Mortgage Inv Trust (SMT) 780.20p -2.33% CRH (CDI) (CRH) 3,115.00p -2.32% InterContinental Hotels Group (IHG) 4,816.00p -2.17% Rolls-Royce Holdings (RR.) 89.73p -2.14% RS Group (RS1) 895.50p -2.08% Royal Mail (RMG) 279.50p -2.07% Harbour Energy (HBR) 371.10p -1.85% Pershing Square Holdings Ltd NPV (PSH) 2,465.00p -1.79% JD Sports Fashion (JD.) 119.35p -1.77% Halma (HLMA) 2,124.00p -1.76%

FTSE 250 - Risers

CMC Markets (CMCX) 253.50p 6.07% Abrdn Private Equity Opportunities Trust (APEO) 483.00p 2.33% Fidelity China Special Situations (FCSS) 275.00p 1.85% NB Private Equity Partners Ltd. (NBPE) 1,400.00p 1.45% JPMorgan Emerging Markets Inv Trust (JMG) 108.40p 1.31% Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 320.00p 1.11% Mediclinic International (MDC) 440.20p 0.92% Sanne Group (SNN) 908.00p 0.78% BH Macro Ltd. GBP Shares (BHMG) 4,380.00p 0.69% Britvic (BVIC) 820.00p 0.68%

FTSE 250 - Fallers

Wizz Air Holdings (WIZZ) 2,221.00p -4.43% Molten Ventures (GROW) 467.60p -3.55% Aston Martin Lagonda Global Holdings (AML) 637.00p -2.78% Sirius Real Estate Ltd. (SRE) 110.40p -2.65% Travis Perkins (TPK) 1,160.00p -2.52% Polymetal International (POLY) 229.10p -2.51% Liontrust Asset Management (LIO) 1,016.00p -2.50% TUI AG Reg Shs (DI) (TUI) 175.60p -2.47% Temple Bar Inv Trust (TMPL) 226.00p -2.38% Watches of Switzerland Group (WOSG) 865.50p -2.37%