The FTSE 100 index was down by 1.47% at 7,277.3, and the FTSE 250 down by 1.66% at 18,849.2 after a day of trading weighed down by weaker-than-expected industrial figures from the Eurozone. Figures from Eurostat showed a 2.3% month-on-month decline in industrial production in July, sparking fears of a recession in the region.
Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, warned that the Eurozone could be entering a technical recession. He said, “That said, the downside surprise in July was primarily due to an 18.9% month-to-month plunge in Irish production, almost surely linked to falling output in the so-called ‘modern sectors’, linked to multinationals’ transfer pricing activity. The data elsewhere, however, were soft too – production in Germany and France fell by 0.7% and 1.5%, respectively, while output in Spain dipped by 1.0%.”
Meanwhile, house prices climbed further in Britain, with the average cost of a home rising more than 9% to £543,517 in the year to July, according to official Land Registry figures.
James Briggs, head of personal finance intermediary sales at specialist lender Together, said, “Many signs suggest the housing market will cool in the coming months. With an emergency budget set to take place in a couple of weeks, all eyes will be on Prime Minister Liz Truss to address the issues and challenges within the housing and mortgage market.”
Home furnishings retailer Dunelm (GB:DNLM) was one of the day’s biggest gainers with stock jumping 3.8% on high profit figures.
Asset manager Abrdn (GB:ABDN) saw shares slump after Deutsche Bank downgraded its stock from Hold to Sell.
British business news today
Kwarteng seeks to scrap bankers’ bonus cap to boost City of London (FT)
Doubts hang over Tory’s concierge business (Times)
Energy bill freeze to hand suppliers £1.6bn profit (Telegraph)
