- FTSE 100 tracks best quarterly win streak since March 2017
- Boohoo drops after warning inflation troubles would hurt margins
- UK’s Q2 GDP growth beats analyst expectations
- FTSE 100 down 0.1%, FTSE 250 off 0.1%
Sept 30 (Reuters) – London’s FTSE 100 fell on Thursday, coming under pressure from a stronger pound, while fashion retailer Boohoo slumped to a 14-month low after it warned higher inflation would hurt margins.
The internationally focussed FTSE 100 index (.FTSE) ended down 0.1% after having gained as much as 0.7% earlier in the session as the dollar earners in the index took a hit from sterling’s strong gains.
“This is not Boohoo’s best look. It is spending heavily on increasing capacity and if sales don’t grow to match it, it will have serious implications for profits,” said Sophie Lund-Yates, an analyst at Hargreaves Lansdown.
The FTSE 100 has gained nearly 10% so far this year, helped by optimism over economic recovery, robust corporate earnings and dovish central bank policies.
However, a recent rise in inflation due to supply chain constraints and higher oil prices have raised interest rate hike bets, weighing on equity markets globally.
“Initially, it felt like UK’s economic recovery was going well and that there was a huge amount of (monetary) control built in, but it now feels like prices are getting out of hand,” said Danni Hewson, an analyst at AJ Bell.
Limiting further losses on the FTSE 100 were industrial miners (.FTNMX551020), up 2.0% tracking a jump in iron ore prices, driven by hopes of a recovery in Chinese demand.
Meanwhile, data showed the UK’s gross domestic product grew more strongly than previously thought in the second quarter. read more
Reporting by Bansari Mayur Kamdar and Amal S; Editing by Saumyadeb Chakrabarty and Ramakrishnan M., William Maclean
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