The FTSE 100 index closed up 131.06 points, or 1.2%, at 10,716.97 on Thursday as UK inflation cooled more than expected in June. The consumer prices index rose 2.6% year-on-year, down from 2.8% in May and below the forecast of 2.7%, while on a monthly basis CPI rose 0.1%, in line with expectations. Lloyds analysts noted that the data marks a third consecutive downside surprise to the Bank of England's expected path, supporting the view that recent upside inflation risks have been less persistent than anticipated. In European equities on Wednesday, the CAC 40 in Paris closed up 1.0%, while the DAX 40 in Frankfurt ended 0.6% higher. Brent oil climbed to 93.74 dollars a barrel amid heightened US-Iran tensions, and gold rose to 4,157.48 dollars an ounce, boosting miners such as Endeavour Mining, which gained 5.3%.
Lloyds Banking Group PLCUK inflation cooling supports view that BoE rate cuts may come sooner, positive for banks like Lloyds.
Endeavour Mining CorpGold price rise boosts mining company Endeavour Mining, which gained 5.3%.