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London’s blue chip index continued to beat its European peers as shares of UK housebuilders climbed following UK house price data; meanwhile hopes were higher for an earlier Bank of England rate cut after the pace of UK consumer price growth held steady in September. The FTSE 100 index was up 85.06 points, 0.9%, at 9,512.05. The FTSE 250 was up 195.36 points, 0.9%, at 22,103.79, and the AIM All-Share was up 1.50 points, 0.2%, at 767.36. The Cboe UK 100 was up 0.8% at 950.62, the Cboe UK 250 was up 0.9% at 19,239.25, and the Cboe Small Companies was up 0.3% at 17,514.01. Following the latest inflation report, which showed annual consumer price growth holding steady at 3.8% in September, investors took encouragement from signs that price pressures are continuing to ease. ‘Better UK inflation news brings a December rate cut back into play,’ said James Smith, developed markets economist at ING. Fresh data from the Office for National Statistics also showed that monthly private rent growth slowed in September. Average UK private rents rose 5.5% year-on-year to £1,354, easing from 5.7% in August. Wales and Northern Ireland recorded the strongest gains at 7.1% each, followed by 5.5% in England and 3.4% in Scotland. The figures lifted London-listed housebuilders, with Barratt Redrow up 2.6%, Persimmon and Berkeley Group each rising 2.4%, Bellway up 2.6%, Vistry advancing 2.7%, Taylor Wimpey adding 2.3%, and builders’ merchant Travis Perkins gaining 3.0%. The pound was quoted at $1.3317 at midday on Wednesday in London, lower compared to $1.3390 at the equities close on Tuesday. The euro stood at $1.1591, down from $1.1612. Against the yen, the dollar was trading at JP¥151.79, compared to JP151.74. European equities were softer despite comments from European Commission President Ursula von der Leyen, who said she was prepared to take further measures to protect the continent’s economic security. ‘A crisis in the supply of critical raw materials is no longer a distant risk, it is on our doorstep,’ von der Leyen told the European Parliament in Strasbourg. ‘We should be very clear also in the determination that no country should hold the ability to undermine our economic security,’ she stated. The CAC 40 in Paris was down 0.3%, while Frankfurt’s DAX 40 slipped 0.1%. L’Oreal fell 6.5% after the French cosmetics conglomerate reported only modest sales growth in the third quarter. Revenue rose 0.5% to €10.33 billion, with like-for-like sales up 4.2%, supported by recovery in North America and mainland China. In New York, futures pointed to a mixed open. The Dow Jones Industrial Average was seen flat, the S&P 500 up 0.1%, and the Nasdaq Composite down 0.1%. Attention later in the day will turn to Tesla’s quarterly results after the closing bell, following a sharp 7% drop in Netflix shares in premarket trading as the streaming company posted lower-than-expected earnings, citing an ongoing dispute with Brazilian tax authorities. The yield on the US 10-year Treasury was quoted at 3.96%, unchanged from Tuesday. The yield on the US 30-year Treasury stood at 4.54%, also unchanged. Barclays was the top FTSE 100 performer, rising 5.0% after upbeat quarterly results. Entain followed among the leaders, despite Citigroup trimming its price target to 1,300 pence from 1,350p while maintaining a ’buy’ rating. In the FTSE 250, Softcat climbed 4.7% after posting double-digit annual growth in both profit and revenue. The IT infrastructure provider reported a 12% rise in pretax profit to £178.2 million on revenue up 52% to £1.46 billion, driven by an ‘exceptionally strong’ second half and large project wins. Among smaller companies, Macfarlane Group slumped 17% after warning that its full-year adjusted operating profit will be 20% to 25% below expectations, citing a fatal incident at its recently acquired Pitreavie business and slower improvement in its Distribution unit. System1 Group rose 11% despite a 6% drop in quarterly revenue to £8.3 million, as the marketing analytics firm said platform sales remained resilient despite ‘wider macroeconomic uncertainty.’ Brent oil was quoted at $62.04 a barrel at midday in London, down from $62.31 late Tuesday. Prices rebounded from five-month lows after the US Department of Energy said it would purchase around 1 million barrels for the Strategic Petroleum Reserve. ‘The market reacted positively to the DOE’s plans,’ said Konstantinos Chrysikos, head of customer relationship management at Kudotrade. Gold fell to $4,078.50 an ounce from $4,131.30 late Tuesday, extending a sharp decline after recent record highs. ‘Gold traders are trying to determine whether yesterday’s collapse signals a new phase of weakness or just a breather after an explosive rally,’ said Joshua Mahony, chief market analyst at Rostro. The 56% plunge marked the steepest one-day fall since 2013, following a $400 surge over the previous week. Still to come on Wednesday’s economic calendar are US EIA crude oil inventory figures later in the day. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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