No-surprise UK GDP data lifts the FTSE 100

Lower-than-expected producer prices in the US raised hopes that the Fed will pause rate hikes, but it also fueled recession fears. In addition, China posted data that showed inflation declined more than expected both for consumer and producer prices, which shows that the rebound experienced after the end of Covid restrictions is slowing.

Oil majors and miners declined yesterday, tracking lower commodity prices. The Bank of England raised its key rate by 25 basis points, as expected. The country is still facing a 10% inflation rate, which is twice the level in the US and the eurozone. The FTSE 100 ended the session 0.1% lower.

The blue-chip index bounced back 0.2% this morning, as data from the Office for National Statistics showed British gross domestic product grew 0.1% in Q1, in line with expectations. Britain’s economy is still smaller than before the Covid pandemic.

Among stocks, insurance and reinsurance group Beazley is up 3.9% after posting strong results.

Things to read today:

Senior Federal Reserve official signals doubts over pause in US rate rises (Financial Times)

Another UK interest rate rise was always nailed on but what happens next? (The Guardian)