Investor sentiment takes a hit

Higher-than-expected UK inflation hit investor sentiment and dashed hopes of March rate cuts for the Bank of England. Expectations have now shifted to June.

In addition, BCE head Christine Lagarde said that it was more plausible that rate cuts would start in the summer. Oil prices dropped after disappointing Chinese GDP data.

The FTSE 100 fell 1.5% on Wednesday and was flat this morning.

Among stocks, retailer Watches of Switzerland tumbled 30% after it cut its guidance due to lower consumer spending.

Online betting company Flutter jumped 9.6% after posting a 15% gain in fourth-quarter revenues.

Things to read today:

• What really happened between Joe Biden and Bill Ackman (Intelligencer)
• Who are the Houthis (The Conversation).
• The ECB should change three bad habits (Project Syndicate).
• Politics is failing Britain’s universities (Financial Times)