U.K. Stocks Decline for Second Day After Inflation ReportInyoung Hwang
U.K. stocks fell for a second day, extending declines after a report showed inflation slowed.
ARM Holdings Plc lost 1.9 percent as technology shares declined. Pearson Plc climbed 1.7 percent after Morgan Stanley raised its recommendation on the owner of the Financial Times to the equivalent of a buy.
The FTSE 100 Index dropped 11.97 points, or 0.2 percent, to 6,792.24 at the close in London. The broader FTSE All-Share Index fell 0.2 percent today, while Ireland’s ISEQ Index slid 0.7 percent. U.K. inflation slowed in August to match the least in five years and has been below the Bank of England’s goal for eight months.
Investors are also watching as Scots prepare to vote on their independence on Sept. 18. Nationalists have a 45 percent chance of winning the referendum, and there’s a risk of a capital flight from the country if that happens, according to a Bloomberg survey of economists.
Federal Reserve officials will maintain interest rates at a record low at their two-day policy meeting beginning today, according to economists in a Bloomberg News survey. The central bank has said that its benchmark rate will stay low for a considerable time after it completes the monthly bond purchases. Chair Janet Yellen holds a press conference tomorrow.
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