FTSE Falls Amid US Inflation Concerns

London's FTSE 100 index fell by 0.4% to 10,830.63 on Thursday, as concerns about sticky US inflation overshadowed strong quarterly earnings from Nvidia.

The decline in the UK market was also reflected in Brent crude prices, which dropped 1.5% to $86.49 a barrel, while West Texas Intermediate fell by 1.7% to $80.87 per barrel.

Susannah Street, chief investment strategist at Wealth Club, noted that investors are refocusing on worries about inflation proving sticky, huge government debt piles, and the prospect of interest rates lingering at elevated levels. 'The key central bankers' meeting at Jackson Hole is getting underway,' she said, 'and Fed chair Kevin Warsh's speech tomorrow will be closely watched for hints about the future path of interest rates.'

Nvidia's shares were expected to rally on Thursday after it reported a doubling of revenues in the second quarter and delivered sales guidance well ahead of market forecasts. The company's strong earnings performance was not enough to offset concerns about inflation, however.