Higher GDP and gold boost UK shares

Higher-than-expected inflation data in the US dampened hopes of March rate cuts. The FTSE 100 fell 1%. Overall, US prices are still coming down, but slowly. Oil prices rose after Iran seized a tanker in the Gulf of Oman.

UK stocks bounce back this morning, lifted by precious metal miners on higher gold prices. Investors also welcomed new data showing that GDP grew more than expected in November, by 0.3% of 0.2% expected in a Reuters consensus. The FTSE 100 was up 0.7% at 10am.

Burberry shares dropped 9% after it warned its full-year results will not meet its guidance after a challenging December. The company now expects adjusted operating profit to be between £410 million and £460 million. The luxury goods sector fell after the annoucement.

Meanwhile, Metro Bank announced the departure of CFO James Hopkinson and the appointment of an interim CFO.

Things to read today:

• Why Trump is unstoppable (The Spectator).
• Does China want to wean the world off the dollar (Noema).
• The planet’s got 99 problems, but exponential growth isn’t one (Financial Times)