London stocks inched up on Monday’s close amid the upcoming release of February inflation data in the US and its potential implication for monetary policy in the world’s largest economy.
The UK’s FTSE 100 index closed 0.12% in the green on Monday.
The US Bureau of Labor Statistics is scheduled to release Tuesday the annual inflation rate for February. The headline inflation rate is widely expected to be unchanged at 3.1%, while the consensus for core inflation is a decline to 3.7% from 3.9% in January.
“We think that with Friday’s report helped to coalesce the timing of a Fed rate cut around June, rather than later. That could be pushed back if this week’s CPI report is an up-side surprise, of course. But inflation swaps suggest that traders are already hedging to protect against such an eventuality, perhaps because of higher US gasoline prices in February,” Macquarie analysts commented.
Speaking of inflation, Chinese authorities published on March 9 the February consumer price index data for the world’s second-largest economy. The figures showed an end to a four-month-long deflation in the country, with the consumer prices up 0.7%, compared with a 0.8% decline a month earlier and the consensus estimate of a 0.3% rise.
Back in the UK, economic releases slated for the week include the labor data due on Tuesday, as well as gross domestic product as well as production figures on Wednesday.
On the corporate front, Imperial Brands IMB launched the 550 million-pound-sterling second tranche of its share buyback program aimed at reducing its capital base over time. The scheme will run until Oct. 29. At closing, the British tobacco company added 2.84%.
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