US Inflation Report Fuels Speculation of Fed Rate Hike

Stocks in London and New York rose on Friday, despite a US inflation report that may signal an impending Federal Reserve rate hike. The data released on Thursday suggested inflation had cooled down from previous months but still remains above the Fed's target, fueling speculation about a rate increase.

The London Stock Exchange closed in the green on Friday, with equities in New York also showing significant gains. However, the market's optimism was tempered by concerns that higher interest rates could dampen economic growth and lead to a recession.