UK stocks fall as inflation rises, Omicron risks rise – .

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UK stocks fall as inflation rises, Omicron risks rise – .


  • Halfords strengthens its Axle Group takeover plan
  • Johnson Matthey and Darktrace broken down at the start of the FTSE 100
  • Bailey warns of continued strong economic impact of COVID-19
  • FTSE 100 down 0.6%, FTSE 250 down 0.9%

December 2 (Reuters) – British stocks fell on Thursday as fears over the Omicron coronavirus variant increased with several countries reporting cases, while inflation warnings from major central banks added to the gloomy mood.

The benchmark FTSE 100 (.FTSE) ended down 0.6%, while the domestically focused mid-cap index (.FTMC) fell 0.9%.

Bank of England (BoE) Governor Andrew Bailey said on Wednesday that the economic impact of COVID-19 remained significant, while noting inflationary pressure from difficulties in the supply chain and the increase demand for consumer goods. Read more

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Banks (.FTNMX301010) slipped amid uncertainty over whether the BoE will hike interest rates this month. BO WATCH

“Raising interest rates at a time when the economy is expected to slow down and see restrictions, perhaps even lockdowns, will only make the economic pain worse,” Oanda analyst Craig Erlam said. .

“What we’re seeing with the financials reflects the fact that he (Omicron) makes the central bank’s job of tightening monetary policy a little more difficult. “

Prime Minister Boris Johnson on Wednesday launched a ‘call for help’ as Britain stepped up its COVID-19 recall program to fend off the Omicron variant after 10 more cases of the new strain were identified, bringing the total to 32. read more

Royal Mail Postal and Delivery Company (RMG.L) fell 4.6% and was among the worst performers on the FTSE 100 first-rate index as it traded ex-dividend.

Johnson Matthey (JMAT.L) and Darktrace (DARK.L) fell 2.2% and 8.7% respectively after index manager FTSE Russell confirmed the companies were close to exiting the FTSE 100 .

Halfords Group (HFD.L) rose 6.5% after announcing it would buy Axle Group for 62 million pounds ($ 83 million) as the cycles retailer focuses on its auto services business. Read more

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UK stocks remain volatile on Omicron news

Reporting by Bansari Mayur Kamdar and Amal S in Bengaluru Editing by Uttaresh.V and Mark Potter

Our Standards: Thomson Reuters Trust Principles.

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