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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Shares fall on Chinese woe and UK inflation

UK inflation fell to zero from a 0.1% increase last month

The London market plunged on Tuesday after UK inflation data and another downbeat Chinese session.

The FTSE 100 Index backtracked 63.25 points to 6021 after the Shanghai Composite had its worst two days since the peak of the August sell-off around three weeks ago,

The UK Consumer Prices Index (CPI) was unchanged in the year to August 2015, that is, a 12-month rate of 0%, down from 0.1% in the year to July 2015.

FXTM research analyst Lukman Otunuga said: "This may result in a setback on when the Bank of England plans to hike interest rates in 2016."

British house prices increased by 5.2% in the year to July 2015, down from 5.7% in the year to June 2015.

Over the Channel, French inflation data for August surprised on the downside, declining 0.1ppt to 0.1% year-on-year on the EU measure as oil prices weighed.

Daiwa Capital Markets said in a note: "We now expect tomorrow to similarly bring a 0.1ppt downward revision from the flash euro area CPI estimate to a five-month low of 0.1% year-on-year.

"This morning also brings the latest euro area trade figures for July, which are expected to show that the headline surplus rose to a new record high at the start of Q3."

In equities, B&Q and Castorama owner Kingfisher (LON:KGF) dropped 10.6p to 349.7p after it revealed lower first-half profits.

Online grocery distributor Ocado (LON:OCDO) ticked up 6p to 321.9p as third quarter sales and profits rose and it said it expected to keep growing slightly ahead of the market.

North River Resources (LON:NRRP) advanced 0.1p to 0.22p on news that the Namibia-focused lead-zinc explorer launched a fully underwritten open offer and placing to raise US$2.8mln.

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