January 16, 2023

Retailers decline as commodity-linked stocks drive up the FTSE 100.

While investors around the world awaited U.S. statistics to determine if inflation has slowed, the FTSE 100 in the UK increased on Thursday as gains in commodity stocks outpaced losses in retailers like Tesco.

By 0830 GMT, the more domestically oriented FTSE 250 mid-cap index (.FTMC) had increased 0.6% and the blue-chip FTSE 100 (.FTSE) had increased 0.6%.

Tesco (TSCO.L) fell 1.3% after maintaining its full-year guidance, despite the company’s CEO’s comment that inflation may not have crested “yet.”

Marks & Spencer shares (MKS.L) declined 1.3% despite strong holiday sales because the firm remained wary of “obvious macro-economic difficulties ahead and underlying cost pressures.”

Afternoon U.S. inflation figures, a crucial checkpoint before the U.S. Federal Reserve’s decision to raise interest rates in February, are eagerly anticipated by investors.

Industrial (.FTNMX551020) and precious (.FTNMX551030) metal miners saw gains of 0.5% and 1.1%, respectively, in the early going for materials stocks.

Following a 5.5% increase, Centrica (CNA.L) rose to the top of the FTSE 100 after British Gas boosted its full-year earnings projection.

After cutting its projected annual earnings, the motoring and cycling components retailer Halfords (HFD.L) fell 19.4%.

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