FTSE 100 on rise as inflation reduces further

European stocks have moved higher amid continued hopes of the Middle East conflict de-escalating, while fresh data showed UK inflation eased to its lowest level in more than two years.

Yesterday, London’s FTSE 100 recovered some of its losses from Tuesday, having suffered the sharpest one-day fall since last July as global tensions remain at the forefront of investors’ minds.

But markets were calmer yesterday, with a lack of major developments coming from the Middle East helping give miners a boost.

The FTSE 100 moved 27.63 points higher, or 0.35%, to close at 7,847.99.

Chris Beauchamp, chief market analyst for IG, said: “The world has spent four days waiting for an Israeli response to Iran’s weekend attacks, and none has yet materialised.

“The wave of selling across global markets has subsided for now, though we suspect it could easily return should Tel Aviv opt for a major retaliatory action.”

Meanwhile, the latest official data showed UK Consumer Prices Index (CPI) inflation slowed to 3.2% in March.

The figure was slightly higher than analysts were expecting, leading City economists and investors to trim their forecasts for interest rate cuts this year.

The pound was up about 0.2% against the US dollar to 1.245, and more or less flat against the euro to 1.17.

Other top European stock markets were in the green. In Frankfurt, the Dax was up 0.12% and in Paris, the Cac 40 climbed 0.79%.

Over in the US, it was a poorer start to trading with the S&P 500 down 0.4% and Dow Jones down 0.3% by the time European markets closed.