A crunch session for investors today sees the release of the May US inflation figure, which if above last month’s 8.3% will fuel fears over future interest rate rises.
The US Federal Reserve is already expected to raise rates by 0.5% next week and in July, but the outlook for the autumn depends on the inflation pressures easing.
Oil prices above $120 a barrel mean rate rise jitters have intensified ahead of this afternoon’s inflation release, with the FTSE 100 index down 1.5% and the S&P 500 off by 2.4% yesterday.
