In its statement, the Fed said that "recent spending and production indicators have softened (...) Nonetheless, job creation has been robust in recent months and the unemployment rate has remained low". While inflation is still considered "elevated", it blamed it supply chain issues and rising food and energy prices, as well as "broader price pressures".

Britain's main equity indexes rose on Thursday, catching up with an overnight rally on Wall Street, while strong results from blue-chip companies Shell and Diageo added to the upbeat mood.

The main FTSE 100 index struggled for direction this morning, initially rising 0.2%, after a Wall Street rally overnight, and then losing 0.3%.

Shares of Shell gained 0.9%, after the oil major posted a record quarterly profit of $11.5 billion, while Diageo rose 1.1% after posting a 24% gain in full-year sales.

Meanwhile, Barclays fell 0.9% on lower-than-expected first-half profit and online trading platform CMC Markets dropped 20.3% after it warned about higher operating costs for fiscal year 2023 than previously forecast.

 

Things to read today:

China’s central bank seeks to mobilise $148bn bailout for real estate projects (Financial Times)

Market rallied as Powell hinted at an eventual slower pace of rate rises (WSJ)

British exporters report stagnating trade as post-Brexit delays blamed (The Guardian)