London’s FTSE 100 has kicked off the day higher as the markets reacted positively to inflation increasing slower than analysts had expected.
ONS data showed a 2.2% uptick in inflation in the year to July, the first acceleration in 2024 and rising from 2% in May and June respectively, but below expectations for a 2.3% increase.
Analysts noted a lower-than-expected service inflation print, of 5.2% against analysts’ 5.5%, which could spell good news for further Bank of England rate cuts this year.
Meanwhile, Aviva shares have held flat after it unveiled a 14% increase in operating profit for the first half of the year. “Sales are up. Operating profit is up. The dividend is up. Our plan to deliver more for customers and shareholders is working really well,” said chief executive Amanda Blanc.
Blanc highlighted that Aviva added 270,000 more customers year to date.
Shares in FTSE 250 infrastructure group Balfour Beatty shifted lower despite it hiking its interim dividend after revenue and profit ticked up over the first half of the year. According to the group, the outlook for complex projects remains “encouraging,” despite a series of plans being scrapped under Britain’s new Labour government.