UK inflation rises to 30-year high

Although yields rose and the yield curve flattened in the UK, financials and tech stocks led the FTSE 100 yesterday due to strong earnings reports. The blue-chip index gained 0.5% at the end of the day.

The London Stock Exchange started in the green today, lifted by oil majors, ahead of the budget update of finance minister Rishi Sunak.

A series of UK inflation data was released today, including headline and core inflation. British inflation rose faster than expected last month to reach a 6.2%, a level not seen for 30 years. This is much higher than the 5.9% expected in a Reuters consensus. This may force the Bank of England to turn more hawkish.

Among stocks, Reckitt Benckiser fell 3.0% after Jefferies downgraded its shares to underperform.

 

Things to read today:

Foreign businesses in China need to heed the lessons of Russian exodus (Financial Times)

Scholz Wants German Reliance on Russian Energy to End Quickly (Bloomberg)

U.K.’s Latest Inflation Shock Adds to Pressure on Sunak to Act (Bloomberg)