Like-for-like retail sales grew 4.7% last month, well below the three-month average of 14.7%
The benchmark London equities will fall around seven points at the opening, according to spread-betters on the IG platform, a day after finishing 9.35 points higher to just over 7,132 .
Overnight, US stocks had a poor session, with the Dow Jones and S&P 500 closing 0.3% and 0.1% lower, while the Nasdaq recovered 0.2% of its mojo.
“Much of the weakness in commodity prices yesterday, which saw crude oil drop to its lowest level in a month, is due to concern over increasing cases of Delta variants in China and United States, acting as a drag on demand, ”said market analyst Michael. Hewson at CMC Marchés.
“China is of particular concern given the disruption caused by recent flooding in parts of the country, which appears to make it difficult to bring new outbreaks of the virus under control, while cases in the United States have reached a six-month high.
“Gold and silver prices also fell sharply before rebounding, as investors waited for this week’s US CPI figures, amid fears that the recent surge in inflationary pressures might be. more persistent than transitory. “
On the UK data front, retail sales data from the British Retail Consortium showed spending slowed slightly in July despite the restrictions being fully lifted.
Comparable sales last month rose 4.7%, down from 6.7% in June and far from the three-month average of 14.7%.
Online spend fell 0.4%, but still remains very resilient as in-store spending increased, but not by much either.
The digital penetration rate for non-food items was just under 50% in July compared to 30% two years earlier.
Attendance to shopping streets continued to grow in the first week of August, increasing 1.4% according to retail specialists Springboard.
In addition, there has been more spending at the theater, movies and sporting events, according to separate figures from Barclaycard.
Barclaycard said spending through its cards increased 11.6% last month from July 2019, as people sought to make the most of their newfound freedom after the pandemic restrictions were lifted.
Entertainment spending has increased for the first time since the pandemic hit the UK in early 2020.
6h50 : Early Markets – Asie / Australie
Stocks in the Asia-Pacific region were mostly higher on Tuesday, even as concerns over a COVID-19 resurgence in China continued to weigh on investors.
China reported 143 new cases on Monday, up from 125 cases a day earlier, driven by the highly transmissible Delta variant.
China’s Shanghai Composite gained 0.40%, Hong Kong’s Hang Seng index rose 0.67%
In Japan, the Nikkei 225 rose 0.25% while South Korea’s Kospi fell 0.71%.
Australian stocks rose with the S & P / ASX 200 trading up 0.23%.
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