(evening standard)
Real wages are falling at their fastest pace in over a decade as household purchasing power comes under increasing pressure.
The Office for National Statistics said non-bonus wages fell 2.2% between February and April, although the total was still 0.4% higher in real terms as some workers received large bonuses.
The update, released alongside a slightly higher unemployment rate of 3.8% for the three months to April, comes as rampant inflation continues to hurt financial markets. Last night, the S&P 500 found itself in bear market territory after falling nearly 4%.
European markets stable after US sell-off
07:44, Graeme Evans
European markets are poised for a more stable session after Monday’s global sell-off left the S&P 500 index in bear market territory and its lowest level for the year.
The S&P closed down 3.9% last night, down 21.8% from its January high, while the tech-heavy Nasdaq fell 4.7% in a blue session marked by inflation fears and the impact of rising interest rates on the world economy was caused .
Just five stocks in the S&P 500 closed higher, their lowest since the summer of 2020. Sentiment was not helped by a report that a 0.75% hike in US interest rates could be on the table when Federal Reserve policymakers meet tomorrow.
Asian markets continued the selling spree this morning although there are hopes for better performances in Europe and Wall Street later today.
Futures markets are pointing to a 1% recovery in the leading US indices, while CMC Markets has called the FTSE 100 index to open 40 points higher at 7245.
London’s top flight fell 1.5% yesterday and the FTSE 250 index fell 2.5%, the latter unhelped by figures showing an unexpected contraction in the UK economy in April.
Sterling fell to a two-year low against the US dollar but showed signs of resilience today after rallying 0.5% and back above $1.22.
Bitcoin, which fell 15% yesterday to its lowest since December 2020, fell another 2% to $22,690 as investors continue to dump riskier assets.
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