US, UK Stocks Display Lower Start This Week

UK stock markets shed 0.5% to close at 7,445 on Monday, in line with its European peers, as investors across the globe traded cautiously awaiting another US inflation data later this week that could provide further guidance on the Federal Reserve’s monetary policy path.

US policymakers are now expected to raise interest rates four times this year as the CPI is seen hitting a near four-decade high of 7% year-on-year in December.

Wall Street trades sharply lower Monday, but traders and investors will be looking for an update Wednesday on an inflation report on consumers.

US stock indexes were falling sharply midday Monday, with the information technology sector once again facing the brunt of the selloff, as the benchmark 10-year Treasury yield rose to 1.8%, with worries about Federal Reserve policy reverberating in financial markets.

On Friday, the Dow finished nearly unchanged, but the S&P 500 fell 0.4% and the tech-heavy Nasdaq Composite lost 1%. According to FactSet, growth stocks underperformed value stocks last week by the most since election week 2020.