Hopes of rate cuts keep markets buoyant ahead of UK inflation report - business live
Rolling coverage of the latest economic and financial news, including the latest UK cost of living reportIntroduction: UK inflation report for MayMarkets jump on rate cut hopes
Stock markets across the Asia-Pacific region have jumped sharply today, following last night’s gains in Europe and the US.
Big moves in global equities y'day as Draghi admitted defeat in rekindling Eurozone inflation and Trump plans meeting with Xi. DJI closed 1.4% higher and UK shares should maintain momentum at the off.
German 10 yr bund yield -0.32% , US T 10yr +2.06%
“Investors are taking heart from the new development.
The two countries will at least be talking (after a lull), so the market thinks there is little chance that talks get broken off soon after they meet,”
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
With Brexit uncertainty still gripping Britain, households could use a boost to real incomes. And the latest UK inflation data, due this morning, could provide it.
“We look for headline inflation to slow to 1.9% year-on-year, while core inflation slows to 1.6% y/y.
The recent depreciation in sterling should help support inflation in May and beyond, and the dip in inflation in May is largely due to base effects in core inflation that will unwind in June.”Continue reading...