The FTSE 100 is down by 0.4% to 7,152 points during the morning session on Wednesday as UK inflation eased back more than anticipated.
“This is good news for those fretting about rising prices but potentially raises some questions about the strength of the UK economic recovery,” says AJ Bell investment director Russ Mould.
Mining firm BHP proved to be a drag on the index after confirmation yesterday that its corporate restructuring would mean an exit from the FTSE 100 as the primary listing for the shares goes to Australia.
“This move will mean products which track the FTSE 100 and funds with investment policies barring them from buying shares with their main listing overseas will have to exit their shareholding,” says Mould.
“The turmoil in Afghanistan and continuing threat posed by the Delta variant of Covid is seeing funds flow into the dollar – a traditional safe haven – with Chinese and US equities both falling overnight.”
FTSE 100 Top Movers
Leading the way on the FTSE 100 is Ocado (1.22%), Just Eat (0.97%) and Vodafone (0.81%).
BHP (-3.83%), Persimmon (-2.44%) and Evraz (-2.12%) are dragging on the FTSE 100 on Wednesday, as the day’s top fallers so far.