Following stronger than expected inflation data
Sterling briefly climbed to its highest so far this week after ONS data showed British inflation unexpectedly stayed close to its highest levels in six years in January.
Following the stronger than expected inflation data, Sterling has risen $1.39, up about 0.5 per cent today, while FTSE 100 changed slightly by 0.13 per cent to 7,186.07 points as of 12:41 GMT.
Last week, the FTSE had posted its biggest weekly loss since the beginning of 2016, ending the week at a 13-month low. Sudden turmoil had gripped global markets last week after America’s Dow Jones dropped around 6.2 per cent in trading. Some £147bn was wiped off the leading UK stock index in the past two weeks volatality, while over $5 trillion has been wiped from global stock markets since January 26, according to S&P Dow Jones Indices.
Reuters has stated that the “trigger” could also be the data released by the government which showed wages rising at the fastest rate since 2009, with an annual increase of 2.9 per cent, sparking worries about inflation and higher interest rates and leading to a sharp rise in US bond yields.