Today, the London index is up 0.6 %, partly due to Vodafone, which reported a better-than-expected 3.3% gain for the first quarter of its financial year ending 20 June 2021. The full-year guidance remains unchanged, although management said it is confident in growth prospects.

Yesterday, ECB head Christine Lagarde reassured markets that the institution is far from a tapering decision, noting that it does not expect to raise its historically low rates until it sees inflation "sustainably" reach the bank's new 2% target. The governing council "expects the ECB's key interest rates to remain at their current levels or lower until it sees inflation reach 2 percent well before the end of its three-year projection horizon" and on a sustainable basis for the remainder of the projection horizon, the bank said in a statement, adding that "this may also imply a transitional period in which inflation is slightly above the target.

Boosting sentiment was also a jump in British retail sales in June. In addition, market-research firm GfK released its consumer-confidence indicator, which was up two points from June, while economists were expecting a flat reading.

Things to read:

Bank of England cannot stop inflation surge, says Broadbent (Daily Telegraph)

Fed Ramps Up Debate Over Taper Timing Pace (WSJ)