UK Markets Stagnate Amid Iran Tensions and Worsening Inflation
Markets in the UK were quiet on Wednesday as tensions between Iran and the US weighed on investor sentiment, offsetting gains elsewhere in Europe.
The FTSE 100 index closed flat at a rise of just 0.02%, while Germany's DAX fell 0.6% and France's CAC lost 0.4%.
A key indicator of UK economic growth, the S&P Global flash UK Services PMI, dropped to 51.7 in September from 52.5, with services firms reporting the fastest price increases in four months due to higher energy costs tied to the Iran conflict.
According to Chris Williamson, S&P Global's chief business economist, 'September is seeing a worrying combination of disappointingly sluggish economic growth and intensifying inflationary pressures.'
The news comes as investors priced in a roughly 60% chance that the Bank of England will raise interest rates on November 5, following Chancellor Rishi Sunak's budget.