The FTSE 100 rose above 7800 for the first time in more than a month as it recovered from the recent turmoil in the banking sector.
On another day of gains, the blue-chip index rose 0.5 percent, or 39.12 points, to 7824.84 and the FTSE 250 rose 0.3 percent, or 46.68 points, to 19,002.73.
That was the FTSE 100’s highest since March 9, when the session ended at nearly 7,880 points, but still below the all-time high of 8,014 set on February 20.
The top low fell towards 7200 last month amid financial sector turmoil, including the collapse of Silicon Valley Bank and rescue of Credit Suisse by Swiss rival UBS.
On the other side of the Atlantic, official figures in the US showed inflation fell to 5 percent in March, the lowest level in nearly two years, falling from 6 percent in February and peaking at 9.1 percent last summer .
Recovery: On another day of gains, the blue-chip index rose 0.4%, or 33.97 points, to 7819.69 and the FTSE 250 rose 0.2%, or 46.02 points, to 19,002.07
Richard Flynn, chief executive of Charles Schwab UK, said the fall in the rate of inflation is likely to be welcomed by investors speculating that the US central bank, the Federal Reserve, could soon break its cycle of monetary tightening.
However, he noted that inflation was still above the Fed’s 2 percent target, and given its “laser focus on fighting inflation,” another rate hike may be necessary.
Back in London, Unite Group rose 1.3 percent, or 12.5 pence, to 976.5 pence after the student accommodation provider said it remained on track to deliver rental growth of between 6 percent and 7 percent for the academic year 2023-24.
There was also good news for Hikma Pharmaceuticals as the drugmaker hired a new CEO.
Riad Mishlawi, the president of the group’s injectables division, will take over on September 1.
As part of the reshuffle, Said Darwazah will step down as interim chief executive and return as chairman. Shares rose 0.2 percent, or 4 pence, to 1776.5 pence.
At Great Portland Estates, the commercial landlord remained optimistic about demand for space in London.
It signed a record 105 new leases and renewals for the year ended March 31. Shares added 1.8 percent, or 9 pence, to 523 pence.
There was less to cheer for Ocado after Goldman Sachs began its coverage of the online grocer with a “neutral” rating and a target price of 600 pence. It fell 2.7 percent, or 14 pence, to 510 pence.
Ingredients maker Treatt posted record first-half sales as sales rose 15 percent to £75.9 million in the six months to 31 March.
Profit of £7.1m was 12 per cent higher than in the same period a year earlier.
It was boosted by the recovery in China, a region strategically important to the group.
Shares rose 5.8 percent, or 34 pence, to 622 pence. Mining giant Anglo American fell 1.2 percent, or 33.5 pence, to 2675.5 pence after signaling lower sales at its diamond arm.
It said De Beers, which mines the gems in Botswana, Canada, Namibia and South Africa, is likely to have sold about £433 million worth of rough diamonds between March 27 and April 11.
This would be less than the £454 million in sales it achieved in the same period a year earlier.
Petrofac sank into the red after the rig builder said it was expected to make a loss of up to £137m following a review of its portfolio in 2022.
Shares of the company fell 13.2 percent, or 9.6 pence, to 63.05 pence.
Purplebricks said it remains in talks with “credible bidders” about the possible sale of the group.
The online broker put itself up for sale on March 1.
It’s also in talks with its competitor Strike, who has until May 10 to make a bid for it or walk out.
Shares fell 3.2 percent, or 0.23 pence, to 7.04 pence.
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