FTSE 100 Live: Weak GDP fuels stagflation fears, tech shares fall again

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DP contracted by 0.1% in March, adding to stagflation fears as the UK economy feels the pressure from rising prices.

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The decline was driven by the powerhouse services sector and meant the UK recorded its lowest quarterly growth rate in a year, according to the Office for National Statistics.

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The increase of 0.8% for the first three months of the year was weaker than 1.3% in the previous quarter and the 1% expansion forecast.

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Nasdaq hit after US inflation, FTSE 100 to fall 1%

Technology shares have continued their slide after yesterday’s US inflation figures stoked expectations of more big rises in interest rates.

April’s CPI figure of 8.3% was lower than the 41-year high of 8.5% seen in March, but higher than the 8.1% forecast.

Fears that prices will remain elevated for longer were fueled by a bigger-than-expected 0.6% month-on-month rise excluding fuel and food.

This will put pressure on the Federal Reserve to act faster on interest rates, which in turn adds to expectations that the US economy is set for a hard landing.

The uncertain growth outlook meant the tech-focused Nasdaq plunged another 3%, having already fallen by more than 25% this year. The Dow Jones Industrial Average fell 1% and the S&P 500 by 1.6%.

Asia markets followed Wall Street lower and the FTSE 100 index is forecast by CMC Markets to open 102 points lower at 7,245, wiping out the gains seen yesterday.

The global recession fears have put pressure on oil prices as Brent crude futures dipped 1% to $106 a barrel this morning. And cryptocurrency Bitcoin is at its lowest level since early 2021 after falling another 5% to around $27,000.

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Credit: www.standard.co.uk /

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