The British pound It fell below $1.14 for the first time since 1985 as a combination of dollar strength and recession warnings weighed on the UK currency.
Sterling fell as low as $1.135 at 8:50 am in London before rising slightly to $1.1378, hitting a 37-year low. It came after the release of figures showing a 1.6% drop in retail sales in August, which ING analysts said showed a “deteriorating consumption picture in the UK”.
Meanwhile, European markets were trading lower on Friday as growth concerns, expectations of rate hikes and continued volatility in the energy market weighed on stocks.
pan europe Stokes 600 It fell 1% with all sectors declining.
United kingdom FTSE 100 It was flat, Germany Dax By 1.7% and France CAC 40 It fell 1.8%.
Many sectors fell 2% or more, including basic resources, construction and industry. Auto stocks fell 2.5% despite data showing new car sales in the European Union rose for the first time in 13 months.
It comes after three days of losses for European shares, which particularly affected energy and technology stocks. However, banking stocks rose yesterday after Morgan Stanley analysts updated the sector.
The World Bank yesterday warned The global recession in 2023, and he said that raising the central bank may not be enough to reduce inflation.
Asia Pacific shares fell on fridaywith the Shanghai Composite down 0.96%, despite China’s August industrial production and retail sales numbers that beat expectations.
Analysts at ANZ said that risk-sensitive stocks and markets will continue to struggle on inflation concerns and expectations of a Fed rate hike next week.
US stock futures were too down friday morning.
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