The FTSE 100 showed little movement on Wednesday, finding stability after a period of tariff-driven selling pressure. Market volatility subsided as investors considered newly released UK inflation data, which presented a mixed picture concerning policy expectations. Gains in certain sectors helped to offset losses in others.
- UK inflation rose more than expected to 3.4%.
- Core CPI was in line with expectations, while services inflation increased less than forecast.
- Banks, including HSBC, Barclays, Lloyds, NatWest, and Standard Chartered, experienced declines.
- AstraZeneca, RELX, Rolls Royce, and BAE Systems also fell.
- Miners and precious metals stocks, like Endeavour Mining, Rio Tinto, Anglo American, Antofagasta, and Glencore, rose due to higher metals prices.
- Burberry climbed over 4% after exceeding third-quarter sales expectations.
- JD Sports advanced almost 2% after forecasting profits in line with estimates.
- Experian dropped almost 5% despite exceeding revenue forecasts.
The index’s performance reflects a push and pull between positive corporate news and broader economic concerns. Strength in specific sectors like mining and positive reactions to earnings reports from some companies provided support, while anxieties surrounding inflation and declines in banking stocks created downward pressure. This suggests that while specific companies may see gains based on their individual performance, the overall market sentiment remains cautious and sensitive to macroeconomic indicators.