The FTSE 100 rebounded from a four-day losing streak, fueled by easing UK inflation data. Investor sentiment was boosted by growing anticipation of a Bank of England interest rate cut in December and potential for further easing into 2026. Gains were seen across various sectors, though some companies faced downward pressure.
- The FTSE 100 traded higher after a four-day slide.
- UK inflation data showed continued easing.
- Markets are pricing in roughly 20 bps of easing in December from the Bank of England, about an 80% probability.
- Sage shares jumped nearly 4% after announcing a £300 million buyback and projecting continued margin improvement.
- Precious-metals miners Fresnillo and Endeavour gained 3.3% and 2.5%.
- Oil majors Shell and BP climbed about 1%.
- Jet2 reported strong interim results driven by robust demand.
- British Land beat profit forecasts thanks to high occupancy tied to the return-to-office trend.
- Ocado fell under pressure as key customer Kroger said it would close three automated fulfilment centres.
The index experienced an upward swing driven primarily by macroeconomic data, with the expectation of monetary policy easing proving to be a significant catalyst. Positive company-specific news, like share buybacks and strong earnings reports, also contributed to the positive movement. However, not all companies fared well, with challenges for one company underscoring the impact of business relationships and technological partnerships on individual stock performance.