All the day’s economic and financial news, including new figures showing how the cost of living in Britain jumped last month
- Latest: MSCI World Index at new peak
- European shares up after S&P 500 hits alltime high
- UK inflation may have hit 2.8% in August
- Real wages probably still falling
- Also coming up: House price data and Frankfurt Motor Show
Economist Marc Brütsch of Swiss Life predicts that UK inflation spiked to 2.9% in August, from 2.6% in July.
RBC on UK inflation: Look for 2.8% Y/Y as a reflection of GBP depreciation. Exp. CPI to peak at 3.1% in October before pulling back in 2018
Expectations that Britain’s inflation rate rose in August are pushing sterling higher this morning.
The pound is up almost half a cent at $1.321 against the US dollar.
It says something about the financial markets that shares can rally on the back of a devastating storm that was only slightly less awful than feared.
“Whether that equity reaction is Panglossian complacency or a sign of wonderful underlying fundamentals remains open to question.
Even Category 5 storms can now be added to the list of things that ’Don’t Really Matter’.
European stock markets are pushing higher in early trading, as the momentum from Wall Street’s rally ripples back to the City.
Investors are surely feeling less concerned about the potential hurricane damage cost. This has brought back the traditional risk on trade.
The new (and watered down) sanctions on North Korea agreed by the United Nations last night are also boosting the markets today, says Matt Simpson, senior market analyst at Faraday Research.
World stock markets are at record highs this morning, thanks to relief that the economic cost of hurricane Irma will probably be lower than feared.
Last night, America’s S&P 500 index finished at its highest ever level, with insurance firms surging.
Firmer European open in prospect as stock indices respond to strong rally across Wall Street. FTSE called 15 higher
The front page of today’s Tampa Bay Times: pic.twitter.com/O3hw3heOev
Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business.
“For road users, petrol prices are up after the respite given by lower prices over the summer.
“Driving to work cost 5% more in August and early September than last year.”