FTSE inches higher despite caution after jump in UK inflation
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London’s top equity markets wobbled after inflation lifted to its highest level since March amid investor caution over key central bank votes. UK Consumer Prices Index (CPI) inflation increased to 2.6% in November after a rise in petrol prices, the Office for National Statistics (ONS) said.
The figures reinforced predictions that Bank of England setters are set to vote to keep interest rates at 4.75% in their final vote of the year despite modest economic growth in recent months. The FTSE 100 finished 3.91 points, or 0.05%, higher to end the day at 8,199.11.
In the US, attention was also turned to central bankers, with eyes firmly on the Federal Reserve’s latest rates decision on Wednesday evening. The Dow Jones bounced back from recent weakness amid hopes its central bank could cut rates. Chris Beauchamp, chief market analyst at IG, said: “Stock markets have found their footing after a mixed morning, but all eyes are on the Fed meeting tonight and the accompanying statement.
“The first half of the month has seen US markets struggle, but there is still plenty of space for the usual second half rally to develop, should we avoid any nasty surprises from Powell and co tonight.”. In mainland Europe, the other main markets also made marginal gains despite some weak earnings updates.
