Economics / Markets

Traders had been expecting the consumer price index to leap above 3% in May and didn't respond noticeably to this morning's news that it actually touched 3.3%, more than 1% above the government's target.

In London, markets slipped slightly, with the FTSE 100 closing down 8.2 points (0.14%) to 5,794.6.

The FTSE100 has opened in positive territory this morning as Barclays dominates the news early Monday. The blue chip index is currently 10.30 points (0.18%) higher to 5813.10.

In London, markets climbed as some banking stocks recovered from a tough week, and the FTSE 100 closed up 12.3 points (0.21%) to 5,802.8.

The outlook for the UK "will get worse, before it gets better," according to Jamie Hooper, manager of AXA Framlington UK Growth fund.

The FTSE100 has is currently 1% lower in early trading despite firms under a rights issue given a timely boost by the FSA. The index is 59.30 points down to 5731.20.

The FTSE has had a much better day today, rising 1.17%, or 67.2, to reach an index value of 5790.50 following yesterday's slump of 104.

Skandia has added the Aegon UK Opportunities fund to its £100m UK Equity Blend portfolio.

The MPC is unlikely to hike rates this summer, held back by deterioration in company liquidity, according to New Star's chief economist Simon Ward.

The FTSE100 has opened well this morning with financials and mining stocks leading a mini recovery for the blue chip index, currently 40.60 points higher (0.71%) to 5763.90.