Proactive Investors - 7.25am: Mixed news on the inflation front
The March inflation print came in hotter than expected at 3.2% against market forecasts of 3.1%, though this still makes for the lowest year-on-year rate since August 2021.
Annual core inflation (which is a better indicator of consumer income pressures) slowed to 4.2% in March, the lowest since December 2021 and down from 4.5% in February.
Retail prices, which also came out this morning, decreased to 4.3% year on year in March from 4.5% in February, marking the lowest rate of retail price inflation since July 2021.
It paints a picture of dogged determination for the economy to cool, though at a slightly slower rate than policymakers might hope.
Office of National Statistics chief economist Grant Fitzner noted that “food prices were the main reason for the fall, with prices rising by less than we saw a year ago”.
“Similarly to last month, we saw a partial offset from rising fuel prices,” he added.
7.10am: Stocks face tough macro conditions
The FTSE 100 could fall even further when markets open today after taking a major battering on Tuesday.
Blue chips plummeted 145 points to finish the day 1.8% lower at 7,820. It was one of the sharpest falls in a year.
As well as concerns about the Middle East, investors are also becoming more worried about the rising Treasury yields, as the odds of a US summer rate cut diminish.
There was mixed news on the macroeconomic calendar this morning, with the March inflation print coming in hotter than expected. Though at 3.2% year on year, it was still the lowest level since August 2021.
A swathe of producer and retail prices will soon be announced.
On the company news front, large-cap betting firm Entain will soon have a trading update out, while ASOS (LON:ASOS) PLC (LSE:ASC) will provide an interim earnings report.
Futures contracts have the FTSE 100 index opening eight points lower at 7,807.