US inflation dropped to 6.5 percent in December - the lowest figure in a year - which was in line with forecasts.

“This will come as enormous relief to investors everywhere, as well as to the Fed,” Robert Alster, chief investment officer at Close Brothers Asset Management, said. 

“Any print higher than the expected 6.5 percent headline rate would have been really negative, and risk assets would have heavily sold off.”

Richard Carter, hea...