FTSE 100 up 1.1, FTSE 250 adds 1
Burberry jumps after Richemont39;s sales beat lifts sector
UK GDP 0.1 in November vs Reuters poll 0.2

Jan 16 Reuters Britain39;s FTSE 100 closed at a near eightmonth high on Thursday, as investors cheered upbeat earnings and signs of cooling inflation that could keep major central banks on track for further interest rate cuts.

The bluechip FTSE 100 jumped 1.1 to its strongest close since May. The domestically focussed FTSE 250 midcap index climbed 1 to a 10day closing high.

Investors took heart from data this week that showed British inflation slowed unexpectedly last month and core U.S. inflation was softer than expected, reviving bets of rate cuts by the Bank of England BoE and the Federal Reserve.

Further on Thursday, numbers showed Britain39;s economic output returned to growth in November but expanded by less than expected.

Markets increased their bets on future rate cuts from the BoE, pricing 63 basis points in 2025.

Strong U.S. data, concerns over inflationary policies under incoming U.S. President Donald Trump and UK fiscal challenges pressured markets last week and drove UK borrowing costs to their highest since 2008.

Also lifting sentiment were upbeat earnings reports.

Burberry jumped 4.1 after Richemont, the owner of Cartier jewellery, fuelled hopes of a revival for the luxury goods industry with endofyear sales that exceeded expectations, lifting shares across the sector.

Luxury retailer Watches of Switzerland Group…