The FTSE closed in the red as Wall Street fell on earnings concerns

Wall Street was lower on concerns about corporate earnings as the FTSE finished in negative territory. Photo: Andrew Kelly/Reuters

The FTSE 100 and European stocks ended lower on Wednesday as the drop in December producer price inflation figures was not enough to discourage investors amid Amazon’s (AMZN) first strike on UK soil.

The FTSE 100 (^FTSE) lost 0.33%, closing at 7,731 points, while the Paris-based CAC 40 (^FCHI) lost 0.25%, to 7,033 points. In Germany, the DAX (^GDAXI) lost 0.25%, to 15,054.

Across the pond, stocks fell on concerns about corporate earnings after a mixed batch of earnings reports and forecasts from Microsoft (MSFT) and others.

The Dow Jones (^ DJI) lost 0.91%, to 33,425 points. The S&P 500 (^GSPC) fell 1.09% to 3,973 points and the NASDAQ (^IXIC) lost 1.43% to 11,172 points.

Microsoft It fell 2% after reporting weaker-than-expected revenue growth and issuing weaker forecasts than some analysts expected.

Meanwhile, Amazon Workers at a Coventry warehouse were striking for pay this Wednesday, the first time the e-commerce giant has faced an industrial strike in the UK.

The GMB union is demanding that Amazon pay its UK workers £15 an hour to bring their wages in line with their US counterparts, who earn $18 an hour.

Employees are unhappy with an increase in wages of 50p an hour to £10.50, which equates to a 5% increase and well below the rate of inflation. Amazon introduced a pay raise last summer. But warehouse workers say it is out of proportion to the rising cost of living.

Stuart Richards, Chief Organiser, GMB, said: “Today, Amazon workers in Coventry will make history.

Read more: Amazon closes three warehouses in the UK putting 1,200 jobs at risk

They defied the odds to become the first Amazon workers in the UK to go on strike.

“They take on one of the largest corporations in the world to fight for a decent standard of living.

They should be proud of themselves.

“After six months of ignoring all requests to hear workers’ concerns, GMB urges Amazon UK managers to do the right thing and give workers an appropriate pay raise.”

“A small percentage of our workforce is involved,” said an Amazon spokesperson.

Victoria Scholar, Head of Investments at Interactive Investor, said: “Amazon employees add to the slew of worker strikes across the UK in several industries as inflation eats away at home wages.

In August, Amazon offered workers a small pay rise of 50p an hour. Both sides are on the hook with workers struggling with a cost-of-living crisis reaching a boiling point, while Amazon is trying to cut its costs with little appetite for a raise.

“While Amazon did very well during the pandemic thanks to the e-commerce boom and increase in package delivery, the post-COVID return to physical stores combined with high inflation means that 2022 has been a tough year for tech ever.

Earlier this month, CEO Andy Jassy said he was planning to cut about 18,000 jobs to face tough economic times, a move that helped instill confidence among investors, which was reflected by its shares rising more than 12% year-over-year. History In stark contrast to last year’s slide.”

Read more: UK business output is falling at the sharpest pace in two years

The index was also lifted by data revealing that producer input prices in the UK rose 16.5% annually in December, slowing from the 18.0% annual rise in November,

On a monthly basis, input prices fell 1.1% in December, compared to a revised monthly decline of 0.2% in November, according to the Office for National Statistics.

Meanwhile, the pound (GBPUSD = X) was slightly lower against the dollar at $1.2356 and higher against the euro (GBPEUR = X) at €1.1343.

Brent crude (BZ=F) rose and traded around $86 (£69.84) a barrel, as rising demand in China signaled a potential market rally.

In Asia, the Nikkei 225 (^N225) in Tokyo closed 0.35% higher at 27,395 points, while the Hang Seng (^HSI) in Hong Kong rose and the Shanghai Composite (000001.SS) remained closed due to the Lunar New Year holiday.

Watch: Amazon strike: The first official strike on British soil begins

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