FTSE 100 virtually flat; Wall Street sees mixed start

• FTSE 100 dips 2 points
• Mixed start for Wall Street
• Babcock boosted despite hefty write-off

3.09pm: Bank of England economist leaves for RSA (not the insurer)

In a surprise move the Bank of England’s chief economist Andy Haldane is leaving after its June interest rate setting meeting to become the new chief executive of the Royal Society for Arts, Manufactures and Commerce.

Haldane – at the Bank for more than 30 years – is seen as a hawkish member of its monetary policy committee and the pound has edged marginally lower against the dollar to $1.375 on the news.

Jame Smith at ING Bank said: “Markets have initially viewed it as the only major hawk leaving the committee, perhaps the only hawk at the moment … His comments about the recovery being particularly fast were not shared by all his colleagues.”

Meanwhile the FTSE 100 seems deeply unmoved by this or indeed any other news, down just 2.52 points at 6886.6.

2.43pm: Wall Street opens on a mixed note

The main indices on Wall Street got off to a mixed start on Tuesday morning as the news concerning blood clots and the COVID-19 vaccine rippled across markets.

Shortly after the opening bell, the Dow Jones Industrial Average was down 0.29% at 33,648 while the S&P 500 was mostly flat at 4,127 and the Nasdaq rose 0.51% to 13,920.

Markets may also be a little skittish due to faster than expected US inflation for March as stimulus measures and an easing of lockdown measures juiced the American economy.

Back in London, the FTSE 100 has slipped lower into late afternoon and was down 13 points at 6,875 shortly before 2.45pm.

1.58pm: US prices edge higher than expected

Those watching the US inflation figures will see further signs of pricing pressures with the March figures coming in slightly higher than expected.

The consumer price index rose 0.6% month on month compared to forecasts of a 0.5% increase. This was the largest rise since a 0.6-percent increase in August 2012.

US CPI (M/M) Mar 0.6% (est 0.5%; prev 0.4%)
– US CPI (Y/Y) Mar 2.6% (est 2.5%; prev 1.7%)
– US Core CPI (M/M) Mar 0.3% (est 0.2%; prev 0.1%)
– US Core CPI (Y/Y) Mar 1.6% (est 1.5%; prev 1.3%)

— LiveSquawk (@LiveSquawk) April 13, 2021

US CPI – Full Report https://t.co/gW4Fa6kiQA pic.twitter.com/bwsFgHRJjT

— LiveSquawk (@LiveSquawk) April 13, 2021

Wall Street was rattled by the latest vaccine news but has recovered slightly after the figures despite the slightly higher numbers. The Dow Jones Industrial Average is forecast to open 0.2% or 68 points lower while the S&P 500 is expected to be flat and the Nasdaq Composite expected to show a 0.49% rise.

In the UK the FTSE 100 is down just 0.07% or 5.05 points at 6884.07.

12.38pm: Vaccine concerns hit US markets

After relative calm, Wall Street futures are pointing to an opening fall after reports of blood clotting associated with the vaccine.

The US Food & Drug Administration has called for a pause in the use of the J&J vaccine. 

As of 4/12, 6.8m+ doses of the J&J vaccine have been administered in the U.S. CDC & FDA are reviewing data involving 6 reported U.S. cases of a rare & severe type of blood clot in individuals after receiving the vaccine. Right now, these adverse events appear to be extremely rare

— U.S. FDA (@US_FDA) April 13, 2021

So the Dow Jones Industrial Average is expected to open 111 points or 0.33% lower while the S&P 500 is set for a 0.27% or 10 point fall and the Nasdaq Composite is likely to dip 0.06%.

In the UK the FTSE 100 has drifted lower again, down 12.71 points or 0.18% at 6876.41.

Before the vaccine news, analysts had been anticipating the latest US inflation figures, due at 1.30pm BST, and the US markets were expected to open higher.

Sophie Griffiths, market analyst at Oanda, said: “US futures are pointing to a muted but mildly positive…