FTSE 100 jumps amid US inflation shock

The FTSE 100 jumped after a stronger-than-expected rise in US wholesale costs pushed up the worth of the greenback.

The UK’s blue chip index rose by 1.5pc, the most important day by day improve since October.

It comes after information confirmed producer costs on the earth’s largest financial system got here in greater than anticipated, affirming expectations that the Federal Reserve will maintain off the beginning of its rate-cutting cycle to the center of the yr.

The producer value index (PPI) gained 0.3pc in January, up from forecasts of a 0.1pc rise, based on the Labor Department. On a year-on-year foundation, the PPI elevated 0.9pc, in contrast with expectations of a 0.6pc rise.

Earlier this week inflation within the US fell by lower than anticipated in January to three.1pc.

The greater PPI triggered an increase within the greenback, which is up 0.3pc in opposition to the pound, handing a lift to the massive variety of exporters on the FTSE 100.

London’s flagship inventory index had already been performing strongly as buyers remained optimistic about potential rate of interest cuts from the Bank of England after the UK fell into recession.

The largest gainer on the FTSE 100 right this moment has been NatWest, rising as a lot as 7.2pc after revealing stronger-than-expected annual income.

Read the most recent updates beneath.