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London’s blue chip index easily outperformed its peers in Paris and Frankfurt on Wednesday as UK consumer price index inflation slowed more than expected in November, with investors awaiting the Bank of England’s interest rate decision on Thursday. The FTSE 100 index opened up 97.40 points, 1.0%, at 9,782.72. The FTSE 250 was up 162.72 points, 0.7%, at 22,203.70, and the AIM All-Share was up 2.65 points, 0.4%, at 752.06. The Cboe UK 100 was up 1.1% at 981.68, the Cboe UK 250 was up 0.7% at 19,281.60, and the Cboe Small Companies was down 0.1 at 17,256.90. UK inflation eased in November, with both headline and core measures slowing as food, alcohol and tobacco prices fell, according to figures published on Wednesday by the Office for National Statistics, ahead of the Bank of England’s policy decision on Thursday. The consumer prices index including owner occupiers’ housing costs, or CPIH, rose 3.5% in the 12 months to November, down from 3.8% in October. On a month-on-month basis, CPIH fell 0.1% in November, compared with a 0.2% rise in the same month last year. Headline consumer prices index inflation also eased. CPI rose 3.2% year-on-year in November, down from 3.6% in October and below the FXStreet-cited consensus of 3.5%. Monthly CPI fell 0.2%, compared with a 0.1% increase a year earlier. The ONS said food and non-alcoholic beverages, alongside alcohol and tobacco, made the largest downward contributions to the monthly change in both CPIH and CPI annual rates. The inflation rate for food and non-alcoholic beverages decelerated to 4.2% on-year in November from 4.9% in October. Monthly, prices for food and non-alcoholic beverages fell 0.2% in November, compared to a 0.5% increase in November 2024. A separate ONS release showed a mixed picture for UK producer price inflation in November, with input cost pressures picking up slightly while factory gate price inflation continued to ease. Producer input prices rose 1.1% year-on-year in November, accelerating from a revised 0.8% increase in October. On a monthly basis, input prices rose 0.3%. Producer output prices rose 0.1% on the month in November but eased on an annual basis. The annual rate of import price inflation rose to 1.3% in November, the ONS said. Michael Brown, senior research strategist at Pepperstone said: ‘Overall, the data points to the UK economy having continued to make disinflationary progress as the fourth quarter progressed, with that progress now occurring at a more rapid rate than the BoE had pencilled in. ‘Hence, the MPC remain overwhelmingly likely to deliver another 25bp Bank Rate reduction tomorrow, albeit likely via relatively narrow 6-3 vote among policymakers. Further rate reductions from here, back towards a more neutral policy rate, remain on the cards, with there being the potential for another rate cut as soon as the February meeting, which may be prompted by a greater easing in labour market conditions, providing that further disinflationary progress, in line with the Bank’s forecasts, continues to be made over the winter months.’ The White House on Tuesday suspended implementation of a UK-US technology cooperation deal signed during President Donald Trump’s state visit to the UK in September. Michael Kratsios, head of the White House Office of Science and Technology Policy, said on X that the UK must make ‘substantial progress’ on trade talks for cooperation to resume. The deal was intended to deepen collaboration in artificial intelligence, quantum computing and nuclear energy, as part of the broader Economic Prosperity Deal agreed in May. In European equities on Wednesday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.3%. The pound was quoted at $1.3326 early on Wednesday in London, down from $1.3429 at the equities close on Tuesday. The euro stood at $1.1720, down from $1.1775. Against the yen, the dollar traded at JP¥155.43, up from JP¥154.79. In Asia on Wednesday, the Nikkei 225 index in Tokyo rose 0.3%. In China, the Shanghai Composite gained 1.2%, while the Hang Seng index in Hong Kong was up 0.9%. The S&P/ASX 200 in Sydney closed down 0.2%. In the US on Tuesday, Wall Street ended mixed. The Dow Jones Industrial Average fell 0.6%, the S&P 500 slipped 0.3%, while the Nasdaq Composite edged up 0.2%. The yield on the US 10-year Treasury was quoted at 4.16%, narrowing from 4.17%. The yield on the US 30-year Treasury was quoted at 4.83%, unchanged from Tuesday. Back in London, Phoenix Group topped the FTSE 100, up 3.6%, after UBS raised the insurer to buy’ from ’neutral’ and lifted its price target to 770p from 670p. Bunzl was the biggest loser on the index, down 4.2%, after reiterating its 2025 outlook. The distribution group said it expects revenue to rise between 2% and 3% at constant exchange rates and remain broadly flat at actual rates, citing ongoing macroeconomic challenges. Bunzl said operating margin is expected to be around 7.6%, with the year-on-year margin decline moderating in the second half. It added that economic and geopolitical uncertainties are likely to persist into 2026, when it expects ‘moderate’ revenue growth and a slightly lower margin. The firm also highlighted the completion of its £200 million 2025 buyback and the acquisition of Damito in Slovakia. CEO Frank van Zanten said: ‘Despite what has remained a challenging market, we expect to meet our outlook for 2025, which was set out in April this year. ‘We continue to remain strongly focused on performance across the broup and are encouraged by operational improvements being made and new business wins in North America. We remain confident in the group’s underlying resilience and strength, and ability to deliver consistent compounding growth in the medium-term.’ On the FTSE 250, IntegraFin Holdings led the risers, up 5.5%, after reporting full-year results. IntegraFin said activity on its Transact platform was elevated ahead of the UK budget, before reverting to trend levels afterwards, and that it enters financial 2026 with growing momentum. The firm reported financial 2025 net inflows of £4.4 billion, up from £2.5 billion, revenue of £156.8 million versus £144.9 million, and pretax profit of £69.1 million, broadly flat year-on-year. The total dividend rose to 11.3 pence from 10.4 pence. Elsewhere, Springfield Properties rose 5.0%, saying it continues to secure new contracts and that gross margins remain strong, particularly in affordable housing. The housebuilder expects first-half revenue of £106.0 million, broadly in line with last year, and said trading in the first half of financial 2026 is in line with expectations. It also signed an agreement with SSEN Transmission to deliver around 300 homes. Brent oil traded at $59.58 a barrel early on Wednesday, up from $59.01 late Tuesday, after President Trump ordered a blockade of ‘sanctioned’ oil tankers travelling to and from Venezuela. The move escalates pressure on Caracas as the US builds a larger military presence in the Caribbean. The country is estimated to have oil reserves of some 303 billion barrels, according to the Organisation of the Petroleum Exporting Countries, OPEC, more than any other nation. Gold was quoted at $4,315.70 an ounce, up from $4,304.60. Still to come on Wednesday’s economic calendar are Germany’s Ifo business climate survey and eurozone consumer price inflation data. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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