FTSE 100 Soars Amid Cooling Inflation and Upbeat Earnings

Britain's FTSE 100 reached an eight-month high with support from positive earnings reports and signs of easing inflation. This buoyancy has fueled optimism around potential rate cuts by central banks like the BoE and the Federal Reserve. Additionally, luxury and tech stocks also saw marked gains.

Britain's FTSE 100 soared to an eight-month high on Thursday, bolstered by robust earnings reports and indications of cooling inflation. This positive sentiment may pave the way for potential interest rate cuts from major central banks.

The blue-chip index climbed 1.1%, marking its highest close since May, while the FTSE 250 midcap index rose 1% to reach a 10-day closing high. Investors remain optimistic following data indicating a slowdown in British inflation and softer-than-expected core U.S. inflation, reigniting hopes for rate reductions by both the Bank of England and the Federal Reserve.

Adding to the upbeat market mood were strong U.S. data and impressive earnings reports. Notably, luxury brand Burberry surged 4.1% in response to Richemont's strong sales figures, while Deliveroo and Trustpilot saw significant stock price increases. Meanwhile, homebuilder Taylor Wimpey faced challenges amid rising building costs.

(With inputs from agencies.)