London’s FTSE 100 rose on Wednesday morning after fresh inflation data came in unexpectedly steady, offering a glimmer of hope on near-term interest rate cuts after labour market figures spooked some investors yesterday.
The blue-chip index jumped 0.60 per cent to 7,557.10, while the FTSE 250, which is more aligned with the health of the UK economy rose 0.46 per cent to 19,010.18.
After traders trimmed their bets on near-term interest rate cuts yesterday following data showing a tighter-than-expected labour market and disappointing US inflation figures, this morning’s UK inflation reading has lifted spirits.
According to the Office for National Statistics, the consumer price index stood at four per cent in January, unchanged from the previous month but undershooting economists’ expectations of an increase to 4.2 per cent.
The strong performance was driven by the first monthly fall in food prices in over two years, despite higher energy costs.
“Inflation is still acting like an awkward teenager, staying stubborn despite attempts to calm it down, although the moodiness isn’t as bad as expected,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“Disinflationary forces are at work in the economy, which should see further drops in the months to come with the target of two per cent within reach this spring.”
Shares in Tui rose 2.4 per cent after its shareholders yesterday approved the travel giant’s plans to delist from the London Stock Exchange in favour of its listing in Germany.
Harry Potter publisher Bloomsbury has forecast its full-year pretax profits to be “significantly ahead” of market expectations, as demand for its books has surpassed projections.
This news the second time in three months that the company has upgraded projections.
Homewares retailer Dunelm has said total sales rose 4.5 per cent in the first half of its fiscal 2024 as it increased its market share in the furniture market, also announcing a special dividend.
Coca-Cola HBC, the European bottling partner of Coca-Cola, saw its organic volume growth exceed expectations, increasing 1.7 per cent throughout the twelve months ended 31 December 2023.
Housebuilder Vistry has signed on to build an additional 5,000 new homes with with build-to-rent specialist Sigma as the sector seeks to navigate a housing market in flux.
Activist investor Kelso has gained two board seats at The Works at it looks to up the value of the discount retailer.