Dragged down by defense sector declines, the UK stock market extended its downward trajectory on Thursday. Additionally, as the minutes from the Federal Reserve’s July meeting were perceived to have a strong stance, global market sentiment turned more cautious.
The UK’s benchmark FTSE 100 index dipped by 0.3%, hovering near a month-long low, marking its fifth consecutive day of decline.
Amid ongoing sell-offs in the FTSE 100 index, recent economic data has displayed robust inflationary pressures, sparking concerns about the possibility of the Bank of England maintaining elevated interest rates for an extended period.
Michael Hewson, Chief Market Analyst at CMC Markets, noted that the current market concern isn’t about whether there will be future rate hikes or how many times they will occur, but rather the real risk lies in how long the central bank will sustain the current elevated interest rate levels.
