FTSE 100 Index Rises 0.4% Amid Ongoing Geopolitical Tensions

The FTSE 100 index closed up 0.4% at 10,650.44 on Friday, driven by various factors including a report that Gulf states are considering meeting with Iranian officials to discuss the Strait of Hormuz.

Investors were also influenced by the latest figures from the Bureau of Labor Statistics, which showed the annual change in the US consumer price index was 3.4% last month, matching the consensus forecast.

Inflation rose to 0.4% month-on-month in August, but core inflation, excluding food and energy costs, eased to 2.4% from 2.5% in July.

Nigel Wilson of Saxo Markets pointed out that front-end yields shot higher and the long-end fell after the US CPI report sent 'a strong market signal' that the Fed will raise rates next week, implying a rate hike is now about 90% likely.