FTSE 100 Tops 7,600

The FTSE 100 index registers a fresh session high in recent trade, clearing 7,600 for the first time since 19 June, adding a little over 2% in the process. The 50- & 200-DMAs have also been pierced during today’s move higher, allowing bulls to focus on the 16 June high at 7,687.61 as the next area of meaningful technical resistance. A move lower in GBP, UK yields and BoE-dated OIS in the wake of the softer than expected CPI print has facilitated today’s rally (although a follow up 50bp hike at next month’s MPC meeting still sees odds of ~50% priced) , with the index currently on track to lodge the largest 1-day % gain since early October. Real estate is the comfortable outperformer on a sectoral basis, which is understandable based on the combination of the previously outlined drivers and elevated pessimism surrounding the sector.