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FTSE struggles for direction as UK rail, post and border force staff strike

Public and Commercial Services (PCS) Union members. The FTSE was fairly muted on Friday
The FTSE rose just 0.2% as members of the Public and Commercial Services Union take part in a border force workers strike action near Heathrow Airport. Photo: Peter Nicholls/Reuters (Peter Nicholls / reuters)

European stock markets were lacklustre on the final day of trading before Christmas as trains, flights and postal deliveries are all set to be disrupted by strikes in the UK.

In London, the FTSE 100 (^FTSE) was still trading flat in afternoon trade, while the CAC (^FCHI) tumbled 0.1% in Paris, and the DAX (^GDAXI) was 0.3% higher in Frankfurt.

It came as Royal Mail employees, as well as National Highways, Driver and Vehicle Standards Agency (DVSA) and Border Force staff are due to take industrial action today.

Travellers arriving in Britain face long queues and delays, with up to half a million people likely to be affected. The walkouts are taking place at Heathrow, Birmingham, Cardiff, Gatwick, Glasgow, Manchester airports and the port of Newhaven on the south coast.

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Steve Dann, Border Force chief operating officer, said: “We are working together with partners across the travel industry to ensure we can continue to meet critical demand and support the flow of passengers and goods through our border.

“During the periods of industrial action, travellers should be prepared for disruption. We encourage everyone to check the latest advice from your operators before travelling.”

The Border Force strike, organised by the Public and Commercial Services Union, will take place from Friday until 26 December, and again from 28 to 31 December.

Meanwhile, Royal Mail said its customer service points will be closed today and on Saturday 24 December for collecting or dropping off items.

Workers on the Crossrail Elizabeth Line will also strike on January 12 in a dispute over pay and pensions, Prospect and the TSSA rail union announced.

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Across the pond on Wall Street, S&P 500 futures (ES=F) were 0.3% higher, Dow futures (YM=F) rose 0.3%, and Nasdaq futures (NQ=F) were 0.3% higher an hour before the bell.

It came as shares closed in a sea of red on Thursday, driven by fears that strong economic data and better-than-expected economic growth will see the US Federal Reserve double down on its interest rate hikes to tame inflation.

The Dow Jones Industrial Average closed 1.1% down, while the broad-based S&P 500 Index lost 1.5 in the previous session. The tech-rich Nasdaq Composite Index also plunged 2.2%.

Data released this afternoon is expected to show a key inflation gauge slipped in November.

Matt Britzman, equity analyst at Hargreaves Lansdown, said: “The Santa rally looks to be short lived across the pond as US stocks came under pressure from renewed interest rate fears, and the FTSE 100 struggles to regain form.

“It’s worth remembering, interest rate hikes always have a lag before they really take hold, and we’d expect economic growth to face tougher tests to come, as Fed actions work through the economy.”

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Stock markets in Asia fell overnight, with the Nikkei (^N225) dropping 1% on the day in Tokyo after Japan reported that its core inflation rate, excluding volatile fresh foods, rose to 3.7% in November.

This was the highest level since 1981 as surging oil costs added to upward price pressures in the world's third-largest economy.

In Hong Kong, the Hang Seng (^HSI) fell 0.4% and the Shanghai Composite (000001.SS) dipped 0.3%, as traders wound down in the approach to Christmas and the New Year.

Shares also fell in Bangkok, Mumbai and Taiwan.

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