A boost in retail spending has caused European markets and stock shares to make strong gains after fuel prices start to drop.
Retailers including Tesco and Sainsbury’s have continued their strong rebound after the government confirmed plans to freeze energy bills for households.
Pound sterling rose to its highest levels this month as it benefited from renewed weakness in the dollar, with a bounce-back in the UK economy shown in July’s GDP figures.
The pound was up 0.96% against the dollar at 1.169 and was 0.09% higher against the euro at 1.154.
Additionally, the price of oil climbed back slightly after last week hitting the lowest levels since the Russian invasion of Ukraine.
“Friday’s resilient tone has continued into the new week, as falling natural gas prices in Europe, as well as hopes that we’ve seen a peak in US inflation, has helped to maintain and build on the rebound seen at the end of last week,” CMC Markets chief market analyst Michael Hewson said.
