UK stocks set to slip as GDP report looms

Summarised from 2 outlets · Updated 15 Oct, 06:57 · Archive

UK stocks are expected to decline as the Office for National Statistics releases August GDP figures economists predict will show economic contraction.

UK stocks are expected to fall on Thursday morning, reversing the previous day's strong performance by the FTSE 100. The Office for National Statistics will release August GDP growth figures that economists anticipate will show the economy has contracted.

The sell-off reflects broader global market turmoil. Technology stocks are experiencing a significant decline, with investors spooked by signs of rising US inflation. The US inflation rate jumped to 3.7%, raising concerns about potential interest rate hikes. Chip stocks have been hit particularly hard, with South Korea's KOSPI index plunging over 8%, Samsung Electronics falling 9% and SK Hynix dropping 10.5%. Japan's Nikkei 225 slid 4.5%.

The sell-off extended to Wall Street on Wednesday, where the S&P 500 fell 1.1% and the Nasdaq Composite lost 1.9%. Dell shares plunged 11%, with CNBC attributing the drop to concerns that enterprise spending on artificial intelligence will not justify the level of investment in AI infrastructure. Interest rate-sensitive stocks are coming under renewed pressure amid the 'higher-for-longer rates' narrative.

How it is being reported

• Tech stock sell-off intensifies as markets await UK GDP report for August – business liveRolling coverage of the latest economic and financial news Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The sell-off in chip stocks is deepening today, worrying investors as market await the latest UK GDP report. Further evidence of right-tail inflation risk in the US has reinforced the higher-for-longer rates narrative, with sellers emerging across risk assets and interest rate-sensitive equities coming under renewed pressure. The breadth of price pressures across the CPI basket has been particularly concerning, challenging a…Guardian Business · 15 Oct, 06:37
• FTSE 100 Live: Stocks to slip; economy tipped to shrinkWelcome back to City AM‘s FTSE 100 live blog. Stocks are set to slip on Thursday morning despite a strong close yesterday for the UK’s blue-chip index. The ONS will reveal the rate of GDP growth for August this morning, which economists expect to reveal that the economy has shrunk. Stick with us throughout the [...]City AM · 15 Oct, 06:24

In this story: Office for National Statistics · FTSE 100 · Samsung Electronics · SK Hynix · Dell

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