UK inflation rate latest: Sunak vows to cut taxes after hitting 2pc target

Thanks for joining me. Inflation has fallen to the Bank of England’s 2pc target for the first time in nearly three years.

5 things to start your day 

1) Britain has gone too far down the anti-risk route, City investors warn | Associated British Foods chairman blames ‘over-zealous’ politicians and regulators for fostering a culture of low growth

2) French election derails stock market plans of ‘dirty’ trainers brand loved by Taylor Swift | The decision to pause its stock market plans came after more than a week of turmoil in European stock markets

3) Nvidia becomes world’s most valuable company after overtaking Microsoft and Apple | Analysts predict company’s chips will become ‘the new gold or oil’ as businesses adopt AI

4) Nato’s $1bn fund backs British start-up to build space factories | Space Forge plans to use low-gravity conditions in space to make crystals for microchips

5) Labour’s claims it will cut energy bills by £300 are ‘false’, insist Tories | Energy Secretary Claire Coutinho warns that Ed Miliband’s plans are a ‘gimmick’

What happened overnight 

Asian stocks were mixed on Wednesday after US benchmarks ticked to more records following the latest signs that the U.S. economy may be slowing without falling into recession.

U.S. futures were mixed and oil prices were little changed.

Tokyo’s Nikkei 225 index climbed 0.2pc to 38,575.54 as Japan’s trade data for May showed exports rose 13.5pc while imports were up 9.5% from a year earlier, pushed higher by rising prices and the weaker value of the yen against the U.S. dollar.

Minutes from the Bank of Japan’s latest policy meeting disclosed a debate among its decision makers over whether the yen’s weakness may push inflation still higher. Governor Kazuo Ueda has hinted at raising the benchmark interest rate in coming months, depending on economic data at the time.

The Hang Seng in Hong Kong added 2pc to 18,264.51 while the Shanghai Composite index lost 0.3pc to 3,020.03 after the head of China’s securities watchdog said at a financial forum in Shanghai that the agency would be enhancing oversight of all financial activities to prevent potential risks.

In Sydney, the S&P/ASX 200 edged 0.2pc lower to 7,764.30. South Korea’s Kospi surged 1pc to 2,792.14.

Elsewhere, Taiwan’s Taiex gained 1.8pc, while Bangkok’s SET fell 0.1[c.

The S&P 500 added 0.3pc, to 5,487.03, setting an all-time high for the 31st time this year. The Nasdaq Composite edged up by less than 0.1pc to set its own record at 17,862.23, while the Dow Jones Industrial Average added 0.1pc to close at 38,834.86.

The yield on benchmark 10-year Treasury bonds fell to 4.21pc from 4.29pc late on Monday.