By Jack Barnett
City traders today were boosted by signs of inflation cooling in the world’s biggest economy sparking a rally on Wall Street.
London’s premier FTSE 100 index climbed 0.25 per cent to 7,507.11 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, surged nearly two per cent to close over the 20,000 mark.
Investors were seemingly exercising caution during the morning session before new US inflation figures were published in the afternoon.
The rate of price rises across the pond cooled to 8.5 per cent, much lower than analysts’ expectations and down from a 40-year high of 9.1 per cent.
That news halfway through the trading day in the City lifted stocks. Wall Street’s top indexes opened sharply higher on the news, lifting market sentiment in Europe.
Insurer Admiral surged over 12 per cent and to the top of the FTSE 100 after the firm said it was hiking premium prices to account for higher claim costs. Competitor Aviva also bumped 12 per cent higher today.
GSK’s consumer pharmaceutical spin out firm and FTSE 100-listed Haleon led losses on the premier index, dropping over eight per cent.
Despite the Bank of England last week projecting the UK will tip into a prolonged recession in the final months of this year, some analysts are upbeat about London stocks.
“The FTSE 100’s more international exposure and gearing toward value, commodity-related, and defensive sectors” led Mark Haefele, chief Investment officer at UBS Global Wealth Management, to publish a positive note on UK stocks this morning.
The post US inflation under shoot boosts London’s FTSE 100 and Wall Street appeared first on CityAM.
