FX.co ★ FTSE 100 Recovers to Close Flat

The FTSE 100 concluded trading on a steady note, successfully rebounding from earlier declines and surpassing the performance of other principal European indices. Marks & Spencer experienced a share price surge of up to 5%, reflecting the impact of robust earnings largely fueled by demand for new bakery offerings. However, the overall gains were somewhat restrained by persistent challenges stemming from a cyberattack affecting their website. Meanwhile, JD Sports faced a significant 10% decline amidst market apprehensions regarding potential tariffs, which have cast uncertainty over its business prospects.

In broader economic developments, UK inflation saw an unexpected rise to 3.5% in April, marking its highest point since January 2024 and surpassing expectations of 3.3%. The inflationary uptick was primarily driven by factors related to timing, such as a delayed Easter and annual adjustments to bills. Although the majority of analysts perceive this surge as a temporary phenomenon, it poses complications for the Bank of England’s anticipated rate-cutting strategies and might necessitate a more cautious approach to monetary policy going forward.