London’s blue chip index was in the green while its European peers were in the red, following better-than-expected consumer price index inflation data, with on-year CPI falling below the 2% target in September.
The FTSE 100 index was up 46.02 points, or 0.6%, at 8,295.30. The FTSE 250 was up 95.54 points, or 0.5%, at 20,889.98, and the AIM All-Share was up 1.34 points, or 0.2%, at 735.20.
The Cboe UK 100 was up 0.4% at 830.83, the Cboe UK 250 was up 0.4% at 18,432.60, and the Cboe Small Companies was up 0.2% at 17,095.40.
‘On a day when investors are dealing with the headache of a big sell-off in many tech stocks, the UK has come into its own and been a shining light on global markets,’ said AJ Bell’s Russ Mould.
‘Investors are taking the view that financial pressures are easing on households and the public will soon be in a stronger position to spend money. This would be good for the economy and good for the army of stocks on the UK market that rely on consumers to make money.’
The Office for National Statistics reported that annual consumer price index inflation in the UK rose by 1.7% in September, slowed from 2.2% in August. This was short of the 1.9% rise that had been expected by FXStreet-cited market consensus.
On a monthly basis, prices were little changed in September, down from a rise of 0.5% in September 2023. Prices rose 0.3% in August, and fell 0.2% in July.
CPI including owner occupiers’ housing costs, or CPIH, rose 2.6% on-year in September, down from 3.1% in August. On a monthly basis, CPIH rose by 0.1% in September, down from 0.5% in September the year before.
Producer prices meanwhile fell 2.3% annually in September, from a revised decrease of 1.0% in August. On a monthly basis, producer input prices fell by 1.0%, accelerated from a 0.3% fall in August.
In European equities on Wednesday, the CAC 40 in Paris was down 0.6%, while the DAX 40 in Frankfurt was down 0.4%.
The European Central Bank is due to meet tomorrow, and is expected to announce another 25 basis point rate cut.
‘The headline inflation in the Eurozone lately dipped below the 2% policy target and European economies are struggling with Germany thought to be in mild recession. The only thing that could hold the ECB back from a dovish cut would be sticky core and services inflation. If that’s the case, the ECB could deliver a hawkish cut. In that case, we could see a rebound in the EURUSD but given the deteriorating fundamentals of the Eurozone and the resilience of the US economy, the single currency could and should lose more ground against the greenback,’ said Swissquote Bank’s Ipek Ozardeskaya.
The pound was quoted at $1.3024 at midday on Wednesday in London, lower compared to $1.3094 at the equities close on Tuesday. The euro stood at $1.0894, down against $1.0950. Against the yen, the dollar was trading at JP¥149.28, down marginally compared to JP¥149.29.
In the FTSE 100, Rio Tinto was up 0.5%.
In Pilbara, productivity gains continue to offset ore depletion, Rio said. Pilbara iron ore production edged up 0.7% to 84.1 million tonnes in the third quarter from 83.5 million tonnes a year prior and 6% from the prior quarter.
However, IOC iron ore pellets and concentrate production fell 13% to 2.1 million tonnes from 2.4 million tonnes a year before, reflecting an 11-day site-wide shutdown following forest fires in mid-July.
This has led to full year iron ore pellets and concentrate production guidance being lowered to 9.1 to 9.6 million tonnes from 9.8 to 11.5 million tonnes before.
Antofagasta gained 2.9%.
The London-based miner focused on Chile said copper production rose 15% to 179,000 tonnes in the third quarter of 2024 from 155,300 tonnes in the second quarter. It was 3.4% higher from 173,600 tonnes a year ago.
Production was driven by a partial destocking of inventories at Los Pelambres and an increase in copper grades and recoveries at Centinela, the firm said.
Copper sales rose 9.3% to 176,500 tonnes from 161,500 in the second quarter and by 11% from 158,700 a year ago, while gold production leapt 54% to 51,800 ounces from 33,600 ounces in the second quarter but fell 9.5% from 57,400 last year.
Elsewhere, Just Eat lost 2.1%.
The Amsterdam-based food delivery platform said it still expects to record €450 million in adjusted earnings before interest, tax, depreciation and amortisation in 2024. This would be up from €324 million in 2023 and just €19 million in 2022.
Gross transaction value in the three months that ended September 30 was €6.34 billion, down 2.8% from €6.53 billion a year before, as orders declined by 5.8% to 211.1 million from 224.2 million. The third quarter totals left GTV down 1.7% and orders down 5.2% in the year-to-date.
On AIM, Feedback gained 63%.
The London-based company’s shares rose, after it announced that it would be able to use funding made possible via the National Health Service reimbursement mechanism.
The Diagnostic Enhanced Advice & Guidance diversions, achieved through the Bleepa platform are now eligible for reimbursement under the Elective Recovery Fund. Bleepa is a UKCA-accredited medical app that is used by the NHS.
Meanwhile, Sanderson Design lost 15%.
The London-based interior design and furnishings company posted pretax profit for the six months ended July 31 of £1.5 million, down 76% from £6.2 million a year prior.
Chair Dianne Thompson said: ‘Trading conditions at the start of the second half have been more challenging than expected in almost all territories, particularly in the UK and Northern Europe. Total brand product sales for the first eight months of the current financial year are down 10%, which compares with being 9% lower for the first 22 weeks of the financial year as announced on June 27. Delivery of the board’s expectations is reliant on a projected improvement in trading during the remainder of the financial year, which includes our important pre-Christmas selling period.’
Stocks in New York were seen a mixed bag. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index flat, and the Nasdaq Composite up 0.1%.
Kamala Harris went after her US presidential election rival Donald Trump’s mental state and fitness for office Tuesday after the 78-year-old Republican’s televised town hall veered into a surreal, impromptu music session.
Three weeks ahead of the US election, Harris’s campaign has begun to focus aggressively on Trump’s health and mental stability, and was quick to weigh in, saying the ex-president appeared ‘lost, confused, and frozen on stage.’
At Monday’s event in Oaks near Philadelphia, a pause for two medical emergencies in the crowd turned into a bizarre 39 minutes of music and dancing as Trump abandoned the discussion of the election to put on his favorite hits, swaying awkwardly on stage.
‘Who the hell wants to hear questions, right?’ he said, bringing the Q&A section to an abrupt end and telling his people to crank up the volume. He then stayed on stage for nine songs, ranging from opera to Guns N’ Roses and Elvis, with the ex-president alternating his dance moves with standing in place and staring into the crowd.
‘Hope he’s okay,’ Harris opined dryly on X.
Brent oil was quoted at $74.08 a barrel at midday in London on Wednesday, up from $73.90 late Tuesday.
Gold was quoted at $2,676.10 an ounce, higher against $2,663.59.
Still to come on Wednesday’s economic calendar, there is a speech from eurozone European Central Bank President Christine Lagarde, and export and import prices from the US.
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