And to top it all, the US Prices Index of the ISM manufacturing index registered 44.2%, down 9 percentage points compared to the April figure of 53.2%, which strengthened bets of a rate hike pause by the Fed. The FTSE 100 ended the session 0.6% higher.
And the momentum keeps going today, with the blue-chip index up 0.5% higher at 9am, trailing upbeat trading in Asia and on Wall Street. This is because US senators voted to suspend the federal debt limit, which avoids the catastrophic scenario of a US default.
Investors are awaiting today’s U.S. non-farm payroll report, which will be released this afternoon, to get more clue about the Fed’s next move on monetary policy.
Things to read today:
‘Faith in the Speaker’: Kevin McCarthy defies critics with US debt ceiling win (Financial Times)
UK House Prices are Falling Again – And There’s More Pain Ahead (Bloomberg)
South West Water Pays £122mm to Shareholders amid sewage leak backlash (Daily Telegraph)