FTSE CRASH: UK markets in freefall as City battered by inflation crisis – traders panic

Financial analyst explains history of inflation amid 40 year high

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Investors across the globe are deeply concerned over the widening impact of inflation on economic growth.

The blue-chip index dropped 2.1 percent, joining a rout in Asian and European markets after Wall Street’s main indexes sank overnight due to a warning on margins from retail giant Target.

Various British companies have also seen their shares take a significant hit with Unilever, Diageo and Tesco all seeing falls.

Supermarket chain Tesco saw the heaviest fall with a 5 percent drop.

Speaking of the concerning situation, Chris Beauchamp, chief market analyst at online trading platform IG said: “Target is more of a discount retailer.

“The expectation would’ve been that they may have not been hit so badly by the slowdown in consumer spending.

“Inflation hit them worse.

“You’re seeing that across the retailers this morning in Europe, they’re falling on expectation that they will also take a hit.

“There is no hiding place on the bad news.”

Aside from retail supermarkets, other British based businesses are suffering.

Royal Mail has been trading down 8.6 percent, its lowest level since December 2020 after its full-year profit came in slightly below market expectations and the postal company warned of margin pressures in the United States.

Oil and gas stocks have also fallen as worries about slowing global economic growth knocked crude prices.

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