London’s FTSE 100 index has tumbled at the open this morning as investors grapple with the Bank of England’s move to hike rates to their highest level in 15 years yesterday.
The FTSE 100 fell 0.15 per cent by 9:20, dragged lower by a sharp 7.96 per cent fall in Ocado shares.
Shares in the retail tech firm spiked yesterday amid rumours of a takeover.
The capital’s premier index slipped as far as 0.7 per cent in early trading to 7,450 as investors dumped shares in miners, housebuilders and banks – all economically-sensitive sectors.
The dip comes after the Bank of England hiked rates to five per cent yesterday in a bid to tame rampant inflation in the UK.
The uplift marks the Bank’s 13th straight rate rise.
Pharmaceuticals giant GSK shrugged off the jitters however and roared to the top of the FTSE 100.
The bump comes after the British drug maker settled a dispute in the US over a heartburn medication.
This morning the Office for National Statistics announced a 0.5 per cent dip in food sales in its regular retail update. It added that there had also been a dip in fuel prices leading to a rise in sales, and an increase of Brits buying summer clothes and DIY items.
“News pharmaceutical giant GSK has settled a case in California alleging its Zantac heartburn medication caused cancer, while crucially admitting no liability, is not a full stop on the saga but is the latest punctuation point in what shareholders will hope is its final stanza,” said Danni Hewson, analyst at AJ Bell.