Stock markets on the other side of the Atlantic surged last night after the head of the US central bank said authorities may start to ease up on interest rate hikes as soon as this month.
The Federal Reserve has made four hefty 0.75% rises since June in a bid to curb inflation.
Fed chairman Jerome Powell said "it makes sense" to slow down to assess the impact of the moves.
Markets soared following the comments.The Dow Jones jumped more than 2%, while the S&P was ahead more than 3% and the Nasdaq raced ahead by 4.41%.
The US has been driving a global shift, as central banks raise interest rates sharply after years of low borrowing costs, to try to slow down rising prices.
The BBC says the Fed's key interest rate has jumped from near-zero in March to more than 3.8% - its highest rate since January 2008.
Cooling demand
By raising interest rates, authorities make it more expensive to borrow money, aiming to cool demand for big-ticket items such as cars, homes and ease inflation.
In the US, higher borrowing costs have already hit sectors such as housing, where home sales have slowed sharply.
"The full effects of our rapid tightening so far are yet to be felt," Mr Powell said in his speech on Wednesday.
"Thus, it makes sense to moderate the pace of our rate increases.The time for moderating the pace of rate increases may come as soon as the December meeting."
Mr Powell's comments come amid signs that inflation in the US may be subsiding. Since peaking at 9.1% in June, the inflation rate has eased - falling to 7.7% in October.
But Mr Powell said the jobs market, including wage growth, remain too strong for the bank's comfort.
"Despite some promising developments, we have a long way to go in restoring price stability," he said, warning that the Fed still plans to raise rates, albeit at a slower pace.
FTSE 100
The UK's top share index, the FTSE 100, was up another 18 points at 7,591 shortly after opening this morning, following yesterday's 61-point gain.
Brent crude futures were down 0.48% at $86.47 a barrel.
Companies reporting today
- Full-year results: AJ Bell, Auction Technology Group