Finance
FTSE 100 rises as markets welcome milder US inflation data
Published by Global Banking & Finance Review®
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
FTSE 100 rose 0.2% as markets welcomed milder US inflation data, suggesting potential interest rate cuts. Spirax surged 13%, leading gains.
(Reuters) -Britain's blue-chip index climbed on Tuesday as equity markets worldwide cheered a milder U.S. inflation print that kept alive hopes for interest rate cuts in the world's largest economy.
The blue-chip FTSE 100 edged up 0.2%, while the more domestically focused midcap index was down 0.2%.
The latest U.S. consumer price index report painted a mixed picture for investors. While overall price increases moderated in July, a measure of underlying inflation posted its largest gain in six months.
Despite the mixed signals, financial markets maintained expectations the Federal Reserve would proceed with an interest rate cut in September.
Back home, data showed Britain's jobs market continues to soften, with payrolls declining for a sixth consecutive month and vacancies decreasing further. However, persistent wage growth underscored the Bank of England's cautious approach toward interest rate cuts.
In markets, Spirax surged 13%, leading gains on the blue-chip index, after the manufacturing group forecast organic sales growth accelerating in the second half of the year on a strong order book.
Among sectors, the aerospace and defence index rose 0.9% in the day. The sector came under pressure since last week after peace efforts by the U.S. to end the Russia-Ukraine conflict gained momentum.
Utilities, which are often traded as bond proxies, were the biggest drag, down 1.8% as the yields on British government bonds rose after the jobs data.
Bellway inched 1.6% higher after it said it expects to build more homes in its new financial year. The outlook lifted the broader UK housing sector index by 0.9%.
London-listed Atalaya Mining Copper climbed 9.2% after the miner raised its copper production outlook for the financial year 2025, lifting the broader industrial metal miners index by 1.1%.
Earlier in the day, a 90-day extension of the tariff truce between the U.S. and China provided temporary relief to investors about global trade, effectively postponing potentially damaging triple-digit duties on Chinese exports to the United States.
Among other stocks, gambling firm Entain dropped 1.9% despite forecasting its annual core profit outlook above market expectations.
(Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Chris Reese)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK economy.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central banks to control economic activity.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a basket of goods and services, indicating inflation levels.
The UK jobs market refers to the availability of employment opportunities and the overall employment conditions in the United Kingdom, including job vacancies and unemployment rates.
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