London-listed shares remained largely stagnant on Friday, with the FTSE 100 index experiencing a minor decline of 0.04%, amidst the release of critical money and credit data for the UK by the Bank of England. The central bank revealed that the M4 money supply in the UK saw a modest growth of 0.3% month-over-month in July.
This represents a deceleration compared to the 0.5% increase recorded in the previous month, which was below the consensus estimate indicating that growth rates would stabilize. Moreover, data from the Bank of England indicated an uptick in consumer credit, which increased by £1.22 billion, reflecting a quicker pace than the prior rise of £869 million.
Additionally, mortgage approvals demonstrated a notable increase, rising to 61,985 in July from 60,610 in June, exceeding market forecasts that had anticipated 60,500 approvals for the month. In a broader European context, preliminary statistics from Eurostat have revealed a decrease in the annual inflation rate for the Eurozone, sliding to 2.2% in August, down from 2.6% in July.
The core inflation rate also receded, easing to 2.8% from the previous 2.9%. Commenting on this economic landscape, ING remarked, "For the European Central Bank (ECB), the slight progress in core inflation and wage growth observed currently, coupled with expectations for the upcoming year, appear to justify a potential cut of 25 basis points in September.
However, the journey towards easing economic restrictions is anticipated to be a gradual and cautious undertaking, as the ECB continues to express concerns regarding potential inflationary risks." Turning to the corporate sector, Anglo American ($AAL) has announced a strategic partnership with Chinese fertilizer entities Sinochem Fertilizer and BeiFeng AMP, aimed at advancing the development of the polyhalite market within China.
This collaboration entails a commitment to jointly promote and enhance low-carbon, soil-friendly fertilizer products while setting polyhalite product standards across the nation. At market close, shares of the British mining firm saw a decline of 1.34%..