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.
The FTSE 100 index is up more than 1% at about 5,860, led by HBOS, after investors returned to selected blue chip banking stocks after recent sell-offs. HBOS is leading the gainers’ board at mid-morning with a 6.7% rise to 337.25p a share, followed by Barclays, up almost 6.4% to 350p. Royal Bank of Scotland is also up, by more than 4%. Whitbread, the hotel operator and owner of the Costa Coffee chain, rose strongly in early trading after reporting like-for-like sales in the first quarter grew by 7%, but was knocked out of the top five gainers of the day by Eurasian Natural Resources Cor...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
