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Stock prices were mixed in Europe on Wednesday afternoon as a Federal Reserve decision and an expected 25 basis point cut draws closer, while UK consumer price inflation remained steady, giving the Bank of England food for thought on the eve of its decision. The FTSE 100 index rose 15.97 points, 0.2%, at 9,211.63. The FTSE 250 rose 96.54 points, 0.5%, at 21,588.41, and the AIM All-Share was down 1.09 points, 0.5%, at 766.78. The Cboe UK 100 was up 0.2% at 922.99, the Cboe UK 250 was 0.4% higher at 18,912.49, but the Cboe Small Companies was 0.1% higher at 17,139.07. In Paris, the CAC 40 was 0.2% lower. But in Frankfurt, the DAX 40 was up 0.1%. Sterling bought $1.3650 against the dollar early Wednesday afternoon, up from $1.3642 at the time of the London equities close on Tuesday. The euro was up at $1.1841 from $1.1837, while against the yen, the dollar was down at JP¥146.26 compared to JP¥146.65. A 25 basis point cut by the Federal Reserve is the most likely outcome at 1900 BST. Before that decision, the Dow Jones Industrial Average is called to open 0.1% higher, but the S&P 500 slightly lower and the Nasdaq Composite down 0.1%. The yield on the US 10-year Treasury was quoted at 4.01% on Wednesday afternoon, easing from 4.05% at the time of the London equities close on Tuesday. The yield on the US 30-year Treasury was quoted at 4.63%, narrowing from 4.66%. ‘Treasury yields are trading heavy and US equity futures are holding steady. We expect the FOMC to deliver a dovish cut because the US labour market is worsening,’ Brown Brothers Harriman analysts commented. ‘If our Fed call pans out, USD will break lower against most major currencies and risk assets will rally. If we’re wrong and the Fed sticks to a patient easing guidance, USD can retrace all this week’s losses before consolidating within its August range.’ UK annual consumer price inflation was steady at 3.8% in August, where it stood in July, though consensus cited by FXStreet had predicted an acceleration to 3.9%. Analysts at Lloyds Bank commented: ‘With base effects likely to see the headline rate of inflation edge higher in the near term, possibly hitting 4% in next month’s release for September, the Bank of England are likely to remain wary of lowering policy interest rates too quickly in an environment where inflation expectations have also recently moved higher.’ The eurozone’s consumer price inflation rate was steady in August, undershooting an earlier estimate, numbers on Wednesday showed. According to Eurostat, the single currency area’s consumer price inflation rate was stable at 2.0% in August, where it stood in July, and in line with the European Central Bank’s target. The figure was shy of the first estimate, which said the pace of consumer price inflation picked up to 2.1%. An ounce of gold fell to $3,665.62 an ounce Wednesday afternoon, from $3,680.32 at the time of the London equities close on Tuesday, while Brent was lower at $67.78 compared to $68.32. Gold hit another record high on Tuesday, topping the $3,700 an ounce mark. Deutsche Bank analyst Michael Hsueh commented: ‘With gold having reached our 2026 forecast (USD 3,700/oz), we believe that the FX and rates environment remain conducive to further upside, while positioning indicators are not stretched. Although gold has screened as rich versus fair value, we think much of this is due to the strength of official demand, which we expect to persist. We show adjusted fair value with excess official demand used as an overlay, similar to the methodology we used to arrive at forecasts earlier this year. We expect that gold’s premium to these models will persist. We raise gold and silver forecasts for next year to $4,000/oz average and $45/oz (from $3,700/oz and $40/oz).’ Gold miners Fresnillo and Endeavour Mining were the worst large cap performers in London, down 3.6% and 1.6%. PRS REIT was the best mid-cap performer, adding 6.1%. It has entered terms for the sale of its operating subsidiary that holds its portfolio of property assets. PRS REIT Holding Co Ltd will be sold to a vehicle owned by a fund being advised by Waypoint Asset Management according to the deal. Proceeds of £633.2 million are expected. ‘Subject to completion of the proposed sale, the board intends to seek further shareholder approval for the voluntary liquidation of the company with a view to distributing the company’s net assets to shareholders as soon as reasonably practicable,’ it adds. Elsewhere in London, PZ Cussons shares rose 12%. It said it delivered operational improvements through 2025 as it reported a statutory annual pretax profit and an unchanged dividend. The Manchester-based consumer goods firms behind Imperial Leather and Carex said it swung to a pretax profit of £6.5 million in the financial year ended May 31, from a loss of £95.9 million a year prior. Adjusted pretax profit fell 8.1% to £41.1 million from £44.7 million. Adjusted operating profit fell 5.8% to £54.9 million from £58.3 million. Revenue declined 2.7% to £513.8 million from £527.9 million. PZ Cussons declared an unchanged final dividend of 2.10 pence per share, bringing the total annual payout to 3.60p, flat from a year prior. For financial 2026, the company expects an adjusted operating profit between £48 million and £53 million. Looking ahead, Chief Executive Officer Jonathan Myers said: ‘We know there is more to do to fully transform PZ Cussons into a business with stronger brands in a more focused portfolio, delivering sustainable, profitable growth. With the strategic actions and operational improvements delivered through 2025, we are confident in the long-term potential for PZ Cussons.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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