US consumer price inflation came through earlier in the day, pushing 0.1% higher in July taking it to 1.7% year on-year. However that inflation 0.1% rise was less than hoped, despite an under pressure dollar and higher import prices; Reuters analysts had estimated a 0.2% rise.
The slower-than-hoped inflation pick-up means more pressure on the Federal Reserve to hold back from raising interest rates (the ‘Fed has a 2% inflation target).
Blue chip US stocks sank after trading started however the Dow steadied with weak-ish gains. At 3.45pm this afternoon the Dow was at 21,901, up 0.28%. The US-North Korean tensions were all too evident in France though with the CAC 40 slumping almost 1% to 5,065.
However the German Dax was more even-handed, climbing eight points to 12,023. At 4pm the pound was at $1.2977, up 0.03% while the euro was at $1.1790, up 0.16%. Tonight the FTSE 100 ended more than 1% lower at 7,309.96 with chunky drops for Standard Life and Rio Tinto, down -3.75% and -3.15%.
- UK FTSE 100 7,309 -1.08%
- Dow 21,118.42 +0.12%
- S&P 500 2,445.53 +0.30%
- Nasdaq 6,247.26 +0.48%
- Nikkei 225 19,729.74 -0.05%
- DAX 12,154.72 -0.22%
- CAC 40 5,130.49 +0.46%
- Gold 1,291.40 +0.10%
- Oil WTI 49.25 -0.26%
Tata pension deal clinched
Some relief for 130,000 Tata steelworkers on their pension rights though most will see a reduction in long-term benefits in exchange for some employment security. A new deal means Tata will sink £550m into the £15bn British Steel Pension Scheme (BSPS) fund. That move is supplemented by a 33% stake in UK Tata Steel operations.