Britain’s FTSE 100 exhibited minimal movement on Wednesday, as stronger-than-anticipated inflation bolstered expectations for an interest rate hike by the Bank of England (BoE), which overshadowed the advances made by oil majors in response to rising crude prices.
The blue-chip FTSE 100 index fell 0.1% to 10,723.02 points by 1022, following two consecutive sessions of declines. The midcap FTSE 250 was muted at 0.02%.
- UK inflation increased to 3.5% in September, surpassing economists’ forecasts of 3.4%, driven by rising energy prices due to the US-Israel conflict involving Iran.
- Money markets are indicating a 98.8% likelihood of a 25-basis-point rate increase by the Bank of England in November, as per LSEG data.
- “We’re likely to see both haulage and agriculture hit hard – sectors that get food and goods to our doors, and a sustained rise here could cause a really nasty second-round shock,” Nick Saunders said
- Finance minister John Healey faced mounting pressure in anticipation of next week’s budget, as official data revealed that government borrowing exceeded forecasts for the second consecutive month, resulting in public debt surpassing £3 trillion.
- Energy stocks gained 1.1%, as oil prices rose 1.2% due to escalating Middle East tensions that fuelled fears of supply disruptions.
- Oil-linked stocks gained, with BP and Shell among the biggest boosts to the FTSE 100 as crude prices climbed.
- Asset manager Aberdeen Group opens new tab, among top losers on the FTSE 100, fell 3.5% after flagging a slower-than-expected return to adviser-segment inflows.
- Midcaps: bicycles-to-car parts retailer Halfords opens new tab dropped about 9%, the steepest on the FTSE 250, after first-half results.
