Retailers tumble as investors fret over spending squeeze
Retailers took a tumble in London today driven by investors fretting over the impact of the cost of living crunch on the sector’s bottom line.
The capital’s premier FTSE 100 index slid 1.54 per cent to 7,476.21 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, shed 1.17 per cent to dip to 20,073.40 points.
Supermarkets led losses in the City today after a string of bleak forecasts this week said the British economy is headed for a sharp slowdown as a result of households cutting spending in response to high inflation.
Poundland owner Pepco Group today confirmed consumers are slashing spending, further hitting market sentiment.
FTSE 100-listed Sainsbury’s was the biggest faller, shedding 5.85 per cent, followed by middle-class favourite and online supermarket Ocado losing 3.91 per cent.
B&Q owner Kingfisher also closed 3.6 per cent lower.
City press favourite and trading platform CMC Markets was the big loser on the FTSE 250 after it said this morning active users plummeted around 12,000 over the last year. Its shares finished over 20 per cent lower.
Investors were also jolted by the European Central Bank becoming the last major monetary authority to signal it will raise rates soon.
President Christine Lagarde confirmed the central bank will lift borrowing costs 25 basis points next month and may even raise them 50 basis points in September if inflation continues to rise on the Continent.