UK Investors move away from equities

The FTSE 100 index is down 0.3% this morning, as investors trade cautiously before the expected Fed announcement of a 0.5% interest-rate rise after the market closes. This will be followed tomorrow by an announcement by the Bank of England, which is also expected to raise rates.

High inflation and worries about Britain's economy are pushing investors away from equities. According to fund network Calastone, UK-focused equity funds saw record outflows of 836 million pounds in April.

Over the last seven years combined, no net new capital has flowed into UK-focused funds, it said.

Among stocks, JD Wetherspoon saw a return to profit in the latest quarter, thanks to easing Covid restrictions.

Boohoo Group also announced that pretax profit for fiscal 2022 dropped due to higher costs, and released a disappointing guidance.

 

Things to read today:

Bank of England Poised to Hike Interest Rates to 13-year High (Bloomberg)

Bond bull market “has come to an end”, Guggenheim’s Minerd says (Financial Times)

Hiking rates is of “absolutely no use” against supply shock inflation, says investment advisory firm (CNBC)