Yesterday, the Bureau of Economic Analysis revealed that the real Gross Domestic Product (GDP) of the United States contracted at an annual rate of 1.6% in the first quarter, renewing worries about the global economy.
Today, data from the Office of National Statistics shows that Real household disposable income in the UK declined in the first quarter due to inflation. This is the fourth consecutive quarterly drop.
London’s blue-chip index was down 1.7% this morning, and was set for its first quarterly decline since September 2020. Oil, metal and mining stocks are among the biggest drag. Financials are also down after Barclays lowered its price targets on HSBC Holdings, Lloyds and Natwest Group.
Bunzl is the top gainer today after the supplies distributor said it expected higher annual revenues, lifted by inflation and acquisitions in the past year.
Things to read today:
Sanctions Escalate But London Struggles to Wean Itself From Russian Billions (Bloomberg)
If Inflation Hasn’t Made You Crazy, Try Buying an I Bond (WSJ)