FTSE 100 struggles for direction

The atmosphere on the London stock exchange is gloomy, between rising oil prices, weak economic data in China and Europe and signs that inflation is resilient in the US. The U.S. services sector unexpectedly did better than expected in August, which goes against the idea that the US economy and inflation is cooling, and strengthens the case for higher rate hikes for longer. Lower than expected jobless claims also dampened the mood as it shows the job market is still very tight.

However, things improved a bit on Thursday after data showed a significant decline in inflation expectations over the next twelve months from UK businesses. The FTSE 100 added 0.2%.

The index is struggling for direction this morning. Shares of Berkeley Group Holdings fell 0.5% after the house-builder reiterated its profit guidance but said the value of underlying private sales reservations is some 35% below last year's rate.

Things to read today:

Saudi push for $100 oil brings new headache for Biden administration (Financial Times)

Apple Becomes the Biggest U.S.-China Pawn Yet (WSJ)