LONDON: U.K. stocks were higher Wednesday as the pound pared gains posted on a surprise rise in U.K. consumer inflation. The FTSE 100 was up 0.30% at 05:00 ET. The pound was off 0.10% at $1.2740. The yield on the 10-year gilt edged below 1% mark. The Conservatives continue alliance talks with Northern Ireland’s Democratic Unionist Party to form a government. Former PM John Major warned a tie-up with the DUP risked sparking a resurgence of violence in North Ireland.
The markets remained buoyed by the prospects of a softer Brexit in the wake of the indecisive general election. The U.K. jobless rate in line at 4.6%. Average earnings up 1.7% against estimate of 2.0% House builders were higher. (LON:Bellway) up 4.32% after reporting strong demand for homes in upbeat trading update.