Economic news

FTSE 100 Falls as Inflation Concerns Weigh

London’s FTSE 100 fell on Monday as higher commodity prices sparked fears of a spike in inflation, while investors awaited Prime Minister Boris Johnson’s plan for a phased easing of business restrictions.

The blue-chip FTSE 100 fell 0.6%, led by declines in consumer staples and industrials stocks.

Oil heavyweights BP and Royal Dutch Shell dipped 0.1% and 0.3%, respectively, despite higher crude prices.

Johnson will plot a path out of COVID-19 lockdown on Monday in an effort to gradually reopen the battered $3 trillion economy, aided by one of the fastest vaccine rollouts in the world.

The mid-cap index fell 0.3%, led by declines in financials and industrials stocks.

British Airways-owner IAG rose 1.1% after it said it raised total liquidity by 2.45 billion pounds ($3.4 billion), reaching final agreement for a 2-billion-pound loan, and through a deal to defer 450 million pounds of pension deficit contributions.

Pub operator Mitchells & Butlers shed 0.5% as it reported a plunge in sales due to all its sites having been forced shut under the latest lockdown.

(Reporting by Shivani Kumaresan in Bengaluru; editing by Uttaresh.V)

Source: Reuters

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