FTSE 100 Surges With Inflation Surprise
(RTTNews) - FTSE 100 of the London Stock Exchange surged more than 1.3 percent as headline inflation for the month of June delivered a positive surprise. Consumer Price Inflation, which was seen falling to 8.2 percent, from 8.7 percent in the previous month actually dropped to 7.9 percent. Core inflation which was seen steady at 7.1 percent also dropped to 6.9 percent.
FTSE 100 oscillated between 7,453.69 and 7,590.91 versus the previous day's closing level of 7,453.69.
The benchmark index of the London Stock Exchange is currently trading at 7,556.60, up 1.4 percent on an overnight basis.
In the 100-scrip index, only 11 are trading in the overnight red zone. Persimmon rallied 7.7 percent followed by Hargreaves Lansdown that gained 7.4 percent. Segro and Land Securities Group have both gained more than 6 percent whereas Barratt Developments and Taylor Wimpey have both gained more than 5.5 percent.
Antofagasta declined 2.6 percent. Weir Group, Anglo American and Ocado, all declined more than 1 percent.
The latest CPI reading has triggered a reassessment of the monetary policy outlook, causing the sterling to tumble, given the likelihood of a less hawkish stance by the Bank of England. This coupled with the dollar's vigor has caused the GBP/USD pair to fall 0.91 percent overnight to 1.2915, from 1.3034 a day earlier.
Pricing in the inflation update, yields on U.K.'s ten-year bonds have eased much more than its European counterparts. It has fallen 2.76 percent overnight, to 4.2165%.
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