FX.co ★ FTSE 100 Pauses 4-Day Gain after Hot CPI Print

On Wednesday, the FTSE 100 declined, ending a four-day upward trend, as unexpectedly high UK inflation figures diminished the likelihood of further interest rate reductions. Inflation increased to 3.5% in April, marking the highest rate since January 2024, and surpassing predictions of 3.3%. Shares of JD Sports plummeted by up to 13% following a trading update that highlighted sales figures falling short of expectations, raising concerns among analysts. The homebuilding sector faced challenges as well, with Barratt Redrow falling 2.5% and Taylor Wimpey, Persimmon, and Berkeley each experiencing declines of over 1%, as the potential for higher interest rates could impact housing demand. Concurrently, Marks and Spencer stocks dropped by up to 3.7% after the company disclosed the extensive consequences of a recent cyber attack, which analysts found to be more severe than anticipated.