London stocks hit record peak, dollar drops before US inflation

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The London stock market struck a record peak close to 8,000 points Tuesday on a wave of European optimism before vital US inflation data.

The dollar slid against main rivals on expectations that the rate of price rises has slowed in the world's biggest economy -- data that could ease the pace of more US interest rate rises.

"The tailwinds from another decent market performance in the US overnight have given the FTSE another boost, propelling it to a new record high and towards the psychologically important 8,000 barrier," Interactive Investor analyst Richard Hunter told AFP. That is still well above the Fed's target of two percent, and analysts said a higher read on the CPI could spark a hefty sell-off on markets, with traders already worried the United States could tip into recession.

 

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