London markets opened higher on Wednesday as UK inflation data suggested consumer price growth remained steady in September, fuelling speculation the Bank of England could cut rates sooner than expected.
The FTSE 100 rose 0.7% to 9,487.95, the FTSE 250 gained 0.6% to 22,045.71, and the AIM All-Share added 0.5% to 769.95.
The Office for National Statistics reported the consumer prices index was flat at 3.8% year-on-year, slightly below the 4.0% forecast. Core CPI cooled to 3.5% from 3.6%, while the broader CPIH measure slipped to 3.9% from 4.0%. Food and non-alcoholic beverage inflation slowed sharply to 4.5%, and housing costs eased to 5.9%, adding to the sense that price pressures may be softening.
Precious metals miner Fresnillo led gains on the FTSE 100, up 5% after reporting third-quarter production in line with expectations and reaffirming full-year guidance.
Barclays climbed 4% after kicking off the UK banks’ reporting season. Pretax profit fell 7% to £2.08 billion, reflecting a £235 million charge linked to motor finance redress, but total income rose 9% to £7.17 billion. Barclays also upgraded its 2025 return on tangible equity guidance above 11% and announced a £500 million share buyback.
International Consolidated Airlines Group added 2.5% after Goldman Sachs upgraded the stock, while Bunzl extended losses following a broker price target cut.
In the FTSE 250, ITV slumped 8.7% after Liberty Global sold half its stake, while Halfords jumped 6.6% on reassuring first-half trading results.
Across the Atlantic, Wall Street closed mixed on Tuesday, with the Dow up 0.5%, the S&P 500 marginally higher, and the Nasdaq down 0.2%, providing a cautiously supportive backdrop for European markets.