Main Menu

Tuesday markets

Pound falls on inflation data as FTSE steadies

London Stock ExchangeInvestors expressed relief that inflationary pressures eased last month, allowing markets to maintain their current buoyancy.

The news that inflation remained unchanged at 2.6% in July saw the pound fall to a five-week low, helping to boost blue-chips, which suffered in a sell-off last week prompted by tensions over North Korea.

Analysts now believe inflation may not hit the 3% peak in October which was forecast by the Bank of England. That should also keep interest rates on hold until next year.

Business also backed the government’s strategy for Brexit, including the proposal of a temporary customs union with the EU to act as a transitionary period for the benefit of businesses.

The newly merged asset manager Standard Life Aberdeen climbed again to be the top FTSE gainer, after a double upgrade from Barclays to overweight from underweight.

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.