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Showing posts from August 19, 2014

European Markets at Close Report August 19, 2014: U.K. stocks climbed for a fifth straight day on Tuesday.

LONDON (MarketWatch) — U.K. stocks climbed for a fifth straight day on Tuesday as weaker-than-expected inflation data eased pressure on the Bank of England to tighten monetary policy this year. The FTSE 100 index  UKX,  +0.56%   gained 0.6% to end at 6,779.31. Investors welcomed the latest reading on U.K. inflation, which showed consumer prices grew by 1.6% in July, down from 1.9% in June and missing analyst expectations of a 1.8% reading. With the U.K. economy on a solid recovery track, a rapid decline in unemployment and inflation last month close to the BOE’s 2% target, some economists had started to speculate that a rate hike could come as soon as November. However, the July inflation data give the BOE’s Monetary Policy Committee more reason to keep interest rates at a record low until the first quarter of 2015, Jake Trask, corporate dealer at UKForex, said in a note. “With dovish comments from BOE Governor Mark Carney last week, this fall in inflation will provide the M