FTSE 100 Live: Entain leads modest stock jump; Surprise growth ‘pushed to rear view’

Good morning and welcome back to the City PM liveblog.

Markets are betting the latest round of peace talks will bring some resolution to the conflict in the Middle East.

US markets managed to clinch a record high close on the latest news of peace talks but in London the FTSE 100 splintered and finished up Wednesday’s session in the red.

It comes as White House press secretary Karoline Leavitt said the peace talks were “productive and ongoing” and the US was “very much engaged”.

“We feel good about the prospects of a deal”, she said, adding that it’s “in the best interests of Iran” to meet Trump’s demands.

Leavitt was also clear that speculation the US would extend its two week ceasefire – due to extend next week – were “not true”.

Back in the City, attention has turned to whether interest rates could come down if the Strait of Hormuz is reopened within weeks.

Peel Hunt’s chief economist Kallum Pickering’s current assumption is that the Bank of England makes two interest rate cuts at the end of this year on the basis that a resolution is found for trading routes in the Middle East. 

He also suggested traders had begun to factor in a “more balanced view” of inflation and growth risks by changing expectations that there would be one hike instead of three. 

We’ll be bringing you the latest news and updates of the morning.

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