Rolling financial and economic news through the day, as Japan and Australia's stock markets jump after the US Federal Reserve's meeting
Here's how Fed chair Janet Yellen sent markets surging
10.43am BST
Will Hedden of IG says the London stock market is "holding on to the coat tails of US markets and a dovish Federal Reserve meeting," with the FTSE 100 now up 58 points, or 0.86%.
Less than half a dozen blue chips are trading in the red, with no notable fallers. On the upside Rolls-Royce (+6%) has powered to the top spot, having promised shareholders a billion pounds in buybacks, after it sold its gas turbine unit to Siemens earlier in the year.
The Feds reaction to recent inflation data as 'noise' created a nice echo for equity bulls, with US indices pushing back towards their early June all-time highs and the VIX printing a low close not seen since February 2007.
10.33am BST
As the US dollar keeps weakening, the pound has touched a new near-five year high of $1.7028.
10.17am BST
As flagged up earlier, travellers on Britain's West Coast line can look forward to four more years of Virgin Trains, after the company paid £430m to keep running the service.
The deal comes two years after the government handed the line to rival First Group, only to slam on the brakes after flaws in the process were exposed.
New Virgin Trains deal means 1 first-class carriage to be converted to standard on each train; direct services to Blackpool, Shrewsbury.
9.49am BST
UK retail sales fell back in May, but sales of football replica shirts stopped the decline being worse, according to data just released.
Feedback from retailers in these stores has suggested that the increase in sales in May 2014 is due to the build-up of the FIFA World Cup. A better picture of the impact of the World Cup on retail sales statistics will be available when June data are released on 24 July 2014.
Average prices of goods sold in May 2014 showed continued deflation of 0.7%, fuel once again providing the largest contribution, falling by 2.2%. Food stores were the only sector to show an increase (0.4%) however, this series continues to fall and is now at its lowest level since March 2006 (0.3%).
9.18am BST
European stock markets are close to their highest level in over six years, reports Reuters, after this morning's rally (see 8.19am):
The rise left the FTSEurofirst 300 just 0.1 percent off of its 2014 high set earlier this month, which was the index's highest level since January 2008.
8.56am BST
In Greece, cleaning workers who lost their jobs last summer in the austerity cutbacks are protesting outside the office of New Democracy, the governing party.
Via Twitter, here are a couple of photos from the scene from crisis-watcher @inflammatory_
Cleaners tied a noose around their necks +blocked entry to New Democracy offices pic.twitter.com/sv230ZrsVC @ANTIplhroforhsh #rbnews #greece
Police arrived at New Democracy offices where protesting cleaners have blocked entry pic.twitter.com/yQGBfQBAxl @ANTIplhroforhsh #rbnews #greece
Surprised intl media ignoring cleaners struggle. Great story,unlikely characters,+rare visible expression of resistance in todays #Greece.
8.43am BST
The strength of the pound should reduce inflationary pressures in the UK, points out economist Shaun Richards:
A symbolic sign of UK Pound £ strength this morning as it nudges above US $1.70 and continues to help reduce inflation #BoE #GBP
By contrast the #ECB will not welcome the rally in the Euro to above 1.36 versus the US Dollar as it thinks it has enough disinflation
8.31am BST
Sterling has hit its highest level in almost five years against the US dollar this morning, as currency traders reacted to last night's events.
The pound pushed back over the $1.70 mark to hit $1.7017, a level not seen since August 2009.
8.19am BST
Europe's stock markets are open, and they're rallying in early trading as traders take their cue from last night's Federal Reserve meeting.
The FTSE 100 has jumped by 46 points, or nearly 0.7%, to 6825. The German, Spanish, Italian and French markets all rose by 0.8%.
Yellen didnt seem too concerned about the recent rise in consumer price inflation and chose to emphasise the risks that low inflation could pose to economic performance.
For unemployment, the Chair referenced the decreasing participation rate saying some of the improvements to the headline rate were as a result of shadow unemployment or discouragement; both of which impy a continued need for stimulus.
8.07am BST
Australia's stock market has enjoyed its best day's trading of the year, sharing in the wider Asian rally.
The Federal Reserve's upbeat view of the US economy drove investors into buying mining stocks, scenting profits if the world's biggest economy picked up pace.
The boards have lit up in Asia today after the Fed delivered a dovish tone, while the market seemed to have been positioned for a slightly more hawkish tone.
This saw US equities extend gains to fresh record levels and this has also resonated through to Asian markets.
7.59am BST
There's nothing like a dovish central bank to get the stock markets moving upwards, and Janet Yellen appears to have done the trick last night - sending most Asian markets rallying.
The Federal Reserve was upbeat about US economic prospects (as we wrote last night), despite actually cutting its growth forecast for 2014 following the bad winter.
"The Fed sees the U.S. economy as on track, while it hinted of low interest rates in the long term."
7.58am BST
#FTSE looking for a strong open after the Fed - 6820, +42. #DAX opening call above 10k at 10012, +82
7.57am BST
Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.
"The draft from the euro zone mission restates more strongly the request previously made to the ECB to do more to fight the risks of deflation.
"It doesn't mention 'quantitative easing' but it does talk about bond purchasing programmes."
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