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May 19, 2021, 10:45 a.m. EDT

U.K. stocks drop as consumer prices surge and commodities tumble

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By Barbara Kollmeyer

Virtually every stock on the FTSE 100 was in the red on Wednesday, after data were released showing a rise in inflation, and following the global selloff.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.64% fell 1.4% to 6,933.48, with the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.3995% down 0.2% to $1.4158, as the dollar /zigman2/quotes/210598269/delayed DXY -0.07% climbed against rivals. The pace of inflation in the U.K. as measured by the consumer-price index  more than doubled  in April, to an annual 1.5% from 0.7% in March.

That marks a high since the beginning of the COVID-19 pandemic, but still far short of the Bank of England’s official 2% target, and some don’t expect a sharp U-turn on monetary policy.

Read: Inflation Shot Up in April in the U.K. Here’s Why This Won’t Last.

“Indeed, much of the rise was ‘baked in the cake’ (largely energy base effects) with little evidence of general price momentum picking up — yet,” said the European economics team at Nomura, in a note to clients.

“However, that may only be a matter of time, with various price indicators in the surveys rising sharply, upstream price pressures clearly gathering pace and semiconductor shortages beginning to affect the supply — and no doubt ultimately the price — of many consumer products,” said the analysts.

Investors worldwide have been concerned that countries with too-hot economies, coming out of the COVID-19 pandemic, could see inflation climb, triggering the need for central banks to tighten up policy. The data weren’t enough to give sterling a boost, with the currency up 0.4% for the week, as investors have been pricing in expectations of stronger growth.

There was a sharp drop in oil prices /zigman2/quotes/211629951/delayed CL.1 +0.30% — with crude prices over 2% lower — and copper /zigman2/quotes/210054311/delayed HG00 -0.35% prices were down 3%. Those losses hit heavily weighted commodity-themed stocks listed in London, with shares of energy companies BP /zigman2/quotes/202286639/delayed UK:BP -0.42% /zigman2/quotes/207305210/composite BP +0.68% and Royal Dutch Shell /zigman2/quotes/206428183/delayed UK:RDSA -0.24% /zigman2/quotes/205095589/composite RDS.A +0.76% down over 2% and 3%, respectively. Shares of miner Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO -0.04% /zigman2/quotes/202627887/composite RIO +1.44% fell over 3%, with fellow miner BHP /zigman2/quotes/208108397/composite BHP +1.27% /zigman2/quotes/203323256/delayed UK:BHP -0.51% down 4%.

A lone gainer was Ferguson /zigman2/quotes/202546598/composite FERG -0.86% /zigman2/quotes/209006722/delayed UK:FERG +1.21% , with shares up over 1%, after the seller of plumbing and heating products lifted full-year guidance on better-than-expected third-quarter results.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,269.11
+46.29 +0.64%
Volume: 133,839
Oct. 26, 2021 12:23p
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3821
+0.0055 +0.3995%
Volume: 0.0000
Oct. 26, 2021 7:38a
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/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
93.74
-0.07 -0.07%
Volume: 0.00
Oct. 26, 2021 7:28a
loading...
/zigman2/quotes/211629951/delayed
US : U.S.: Nymex
$ 84.01
+0.25 +0.30%
Volume: 103,786
Oct. 26, 2021 7:28a
loading...
/zigman2/quotes/210054311/delayed
US : U.S.: Nymex
$ 4.51
-0.02 -0.35%
Volume: 22,747
Oct. 26, 2021 7:28a
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
359.15 p
-1.50 -0.42%
Volume: 7.27M
Oct. 26, 2021 12:22p
P/E Ratio
11.63
Dividend Yield
4.42%
Market Cap
£70.54 billion
Rev. per Employee
£2.21M
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/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 29.71
+0.20 +0.68%
Volume: 6.59M
Oct. 25, 2021 4:00p
P/E Ratio
11.61
Dividend Yield
4.22%
Market Cap
$97.15 billion
Rev. per Employee
$2.84M
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,771.60
-4.20 -0.24%
Volume: 884,184
Oct. 26, 2021 12:23p
P/E Ratio
35.80
Dividend Yield
0.04%
Market Cap
£135.69 billion
Rev. per Employee
£1.52M
loading...
/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 49.06
+0.37 +0.76%
Volume: 4.87M
Oct. 25, 2021 4:00p
P/E Ratio
34.70
Dividend Yield
2.59%
Market Cap
$186.88 billion
Rev. per Employee
$1.95M
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,764.50 p
-2.00 -0.04%
Volume: 406,269
Oct. 26, 2021 12:23p
P/E Ratio
5.62
Dividend Yield
13.14%
Market Cap
£77.43 billion
Rev. per Employee
£732,787
loading...
/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 66.83
+0.95 +1.44%
Volume: 2.46M
Oct. 25, 2021 4:00p
P/E Ratio
5.84
Dividend Yield
10.24%
Market Cap
$106.65 billion
Rev. per Employee
$939,693
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 57.44
+0.72 +1.27%
Volume: 3.04M
Oct. 25, 2021 4:00p
P/E Ratio
13.16
Dividend Yield
10.48%
Market Cap
$139.62 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203323256/delayed
UK : U.K.: London
1,985.80 p
-10.20 -0.51%
Volume: 806,300
Oct. 26, 2021 12:23p
P/E Ratio
12.10
Dividend Yield
10.95%
Market Cap
£101.38 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202546598/composite
US : U.S.: NYSE
$ 148.21
-1.28 -0.86%
Volume: 27,667
Oct. 25, 2021 4:00p
P/E Ratio
17.88
Dividend Yield
1.62%
Market Cap
$32.94 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209006722/delayed
UK : U.K.: London
10,880.00 p
+130.00 +1.21%
Volume: 47,468
Oct. 26, 2021 12:23p
P/E Ratio
17.85
Dividend Yield
1.60%
Market Cap
£23.92 billion
Rev. per Employee
N/A
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