Luxury Sector Rally Boosts FTSE 100

A rally in luxury stocks in Europe boosted the FTSE 100, lifting the benchmark more than a percent. Anxiety ahead of the release of the PCE-based inflation readings from the U.S. limited gains.

FTSE 100 oscillated between 7,627.86 and 7,529.69 as compared with the previous day’s closing level of 7,529.73.

The benchmark index of the London Stock Exchange is currently trading at 7,627.24, having added 1.29 percent on an overnight basis.

In the 100-scrip index, only 8 are trading in the overnight negative zone.

Diageo surged 3.9 percent, followed by Croda International that rallied 3.6 percent. Rentokil Initial, St James’s Place, Barclays, Intermediate Capital Group, all added more than 2 percent.

J Sainsbury slipped 1.5 percent followed by Marks and Spencer Group that shed more than a percent.

The GBP/USD pair increased 0.07 percent overnight to 1.2717 while the Dollar Index slipped 0.10 percent to 103.47. The sterling ranged between $1.2722 and $1.2675 in the day’s trade.

Ahead of the monetary policy decision by the Bank of England due on Thursday, yields in the U.K. eased much less than its counterparts in Europe. Ten-year bond yields declined 0.03 percent to 3.9840 percent. The same was 3.9850 percent a day earlier.

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