Economic news

FTSE 100 Slips from Record High on Fed Rate Jitters

  • FTSE 100 down 0.5%, FTSE 250 off 0.6%

Feb 6 (Reuters) - UK's FTSE 100 slipped on Monday from a record high, as global sentiment soured after data pointing to strength in the U.S. labour market raised worries that the Federal Reserve could keep hiking interest rates for longer.

The blue-chip FTSE 100 slipped 0.5% by 0808 GMT after setting a record high of 7,906.58 in the previous session, helped by a weaker pound and a jump in commodity-linked stocks.

Globally, stocks wilted and government bond yields rose after upbeat economic data from the United States and other economies lessened the risk of recession, but also suggested rates would have to rise further and stay up for longer.

Meanwhile, worries about the UK economic outlook kept the domestically focussed FTSE 250 index under pressure. The index was down 0.6% on Monday.

Data due later this week is expected to show the UK economy contracted by 0.3% in December on a month-over-month basis, just enough to leave the gross domestic product flat in the fourth quarter.

Among individual stocks, Hargreaves Lansdown fell 3.5% after Credit Suisse downgraded the wealth manager's shares to "underperform" from "neutral".

Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu

Source: Reuters

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