London’s blue-chip index hit fresh heights on Wednesday, brushing aside hotter UK inflation and Wall Street’s ongoing tech sell-off.
The FTSE 100 closed 1.1% higher at 9,288.14, having earlier touched an intraday record of 9,301.19.
The mid-cap FTSE 250 added 0.2% to 21,885.88, while the AIM All-Share slipped 0.5% to 759.74.
UK inflation data surprised on the upside, with annual CPI rising to 3.8% in July from 3.6% in June, higher than consensus expectations. Core inflation and services inflation also ticked up, leading analysts to warn that the Bank of England may hold interest rates steady for longer.
Across the Atlantic, the Dow eked out a 0.1% gain, but the Nasdaq dropped 1.2% and the S&P 500 fell 0.5%. The slump was fuelled by an MIT report suggesting most corporate investments in generative AI were delivering “zero return”. Nvidia lost 3% and Palantir tumbled 9% though both pared losses late in the session.
The rout is being viewed by some as a necessary cooling-off after a relentless rally in the sector, with Nvidia’s results next week now seen as a key test of sentiment.
On the FTSE 100, ConvaTec surged 5.6% as it launched a $300 million buyback. United Utilities climbed 3.5% after Barclays upgraded its rating. Tech-heavy funds were hit, with Polar Capital Technology Trust down 3.2% and Scottish Mortgage Investment Trust off 1.6%.
Ithaca Energy was a standout on the FTSE 250, soaring 10% after profits nearly tripled and production guidance was raised. On AIM, Fevertree Drinks slid 9.9% following a broker downgrade, while James Latham and Angling Direct rose on upbeat trading updates.