The FTSE 100 set a new record high today, closing at 7,906.58, driven largely by strong performances in the energy and commodities sectors. The index rose by 1.5%, surpassing its previous peak from May this year. Analysts attribute the growth to robust earnings reports from key players such as BP and Glencore.
In contrast, the US Labor Department announced an unexpected rise in inflation rates, with September figures showing a 0.6% increase month-over-month. This marks the highest jump in consumer prices since June and adds pressure on the Federal Reserve to reconsider its monetary policy approach. “The inflation spike caught many off guard,” notes economist Jane Roberts of Capital Economics. “It puts the Fed in a challenging position ahead of their next meeting.”
Investors reacted swiftly to the inflation data, with US stocks facing a sell-off. The Dow Jones Industrial Average fell 0.8%, while the S&P 500 slipped by 0.9%. On the other hand, the pound strengthened against the dollar, climbing to $1.36, its highest level in several weeks.
The tech sector, however, bucked broader market trends. Shares of Apple and Microsoft rose 2% and 1.8% respectively, buoyed by optimism about upcoming product launches. Industry expert Mark Thompson commented, “Tech continues to show resilience amid economic uncertainty, driven by strong consumer demand.”
Banking stocks in the UK also performed well, with HSBC and Lloyds seeing gains of 2.3% and 1.7%. Market strategists suggest this is a response to potential benefits from ongoing inflation and interest rate dynamics. “Banks could be poised to capitalize on the economic landscape,” says financial analyst Roger Clancy.
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