The FTSE 100 bounced back from the morning’s three-month low as mixed data showed the US economy grew by more than expected in the second quarter, but other points indicated a bigger fall in the Federal Reserve’s preferred inflation measure that is due on Friday.
The US economy grew by 2.8% annualised rate over the three months to the end of June, according to data from the Bureau of Economic Analysis, which beat forecasts of 2% growth, and came in ahead of the first quarter’s 1.4%.
While the data indicated a resilient economy, StoneX Group’s market analyst Fawad Razaqzada said a larger than expected fall for the gross domestic product core personal consumption expenditures index, which came in at 2.9% for the second quarter rather than 3.7% as expected.
