Shares fall but pound is up after inflation rises

(ONS) showed the Consumer Price Index (CPI) measure of inflation hit 2.9 per cent in August, outstripping economists’ expectations of 2.8 per cent, thanks to higher clothing and fuel prices.

“The GBP/USD hit a one-year high today as the strongerthan-expected inflation figures from the UK prompted buying,” said David Madden, a market analyst at CMC Markets.

“It will make for an interesting Bank of England (BoE) meeting tomorrow.”

Across Europe, the French Cac 40 and German Dax both ended higher up 0.6 per cent and 0.4 per cent respectively.

Brent crude prices rose 0.7 per cent to $54.30 (£45.39) per barrel following reports oil production among Opec members fell last month, suggesting agreements to output curbs could start impacting the global glut.

In UK stocks, shares took a tumble after Culture Secretary Karen Bradley said Rupert Murdoch’s £11.7 billion bid to take full control of the broadcaster faces a potential wider investigation by the competition regulator.

She told MPs she is now also minded to ask the Competition and Markets Authority (CMA) to conduct a fuller investigation into 21st Century Fox’s bid on the grounds of “genuine commitment to broadcasting standards”.

Ms Bradley outlined her decision on whether to refer the bid for a six-month investigation to the CMA in a statement in the Commons.

Shares in closed down more than 1 per cent, or 15.5p to 937p.

Away the top tier, retailer hailed another record set of results and upped

from its earnings outlook for the full year after robust sales.

The group cheered an “exceptional first half” after it saw pre-tax profits leap a third higher to £102.7 million in the six months to July 29.

It said full-year profits were now set to come in towards the upper end of market expectations, of £268m to £290m.

Shares in the FTSE 250 firm surged 31.1p to 373.7p.

The biggest risers on the FTSE 100 were group, up 75p to 1,759p; up 4.7p to 191.35p; up 5.9p to 249.7p; and

up 55p to 2,386p.

The biggest fallers were down 235p to down 37p to

down 7,765p; 1,570p; and 52p to 2,503p. THE S&P 500 hit a record closing high for the second day in a row yesterday, with financial stocks leading the charge, but gains were stunted by a decline in shares after it unveiled its latest iPhone.

Nasdaq also clocked a record closing high despite weakness from Apple. Investors were more comfortable with riskier assets as concerns about US tensions with North Korea eased and the financial impact from Hurricane Irma appeared less severe than feared last week.

The financial sector was the S&P 500’s biggest driver as bank stocks were helped by rising US Treasury yields, while the utilities and real estate sectors lost ground. The Dow Jones Industrial Average rose 61.49 points, or 0.28 per cent, to 22,118.86, the S&P 500 gained 8.37 points, or 0.34 per cent, to 2,496.48 and the Nasdaq Composite added 22.02 points, or 0.34 per cent, to 6,454.28.

Apple’s shares closed a volatile trading session 0.4 per cent lower at $160.82 after rising as high as $163.96, after it unveiled its 10th anniversary edition of the iPhone. Apple’s release date of November 3 was later than some investors had expected.

The iPhone maker was the second-biggest drag on the S&P behind which fell more than 3 per cent on concerns about its third-quarter results. Most of the 11 major S&P sectors were higher, with the telecom services index clocking the biggest gain with a 1.4 per cent rise.