IAG weighs (Il Sole 24 Ore Radiocor) - London, 12 Jul - UK shares closed higher boosted by rising hopes of a rate cut in the US after the latest inflation data.

The US producer price index came in slightly higher than expected but was not high enough to cast doubts over the fact that US inflation is slowly easing towards the Federal Reseve's 2% target. Yesterday, the consumer price reading - the Fed's favourite inflation gauge - came in cooler than expected.

According to the CME FedWatch Tool, the market is now pricing in a 91% chance the Fed cuts rates in September compared to a 75% chance just two days ago.

Among individual stocks, shares in British Airways-owner IAG fell 2.19% at 174.00 pence following a profit warning from German rival Lufthansa.

The London FTSE 100 closed up 0.36% at 8,252.91 points.

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(RADIOCOR) 12-07-24 18:18:34 (0505) 5 NNNN