London’s FTSE 100 closed higher on Wednesday, as investors digested a key inflation report that showed a slow decline in services inflation, while industrial miners tracking rising copper prices took offset the declines.
The blue-chip FTSE 100 closed 0.2% higher, above the crucial 8,200 level for the first time in a week, while the mid-cap FTSE 250 fell 0.1%.
The pound gained 0.1% against the dollar to settle at $1.2723. [GBP=D3]
Investors had to grapple with a slower-than-expected decline in service price inflation in May, which the BoE said offers a clearer view of medium-term inflation risks, even as headline inflation fell to BoE’s 2% target.
“The market is quite optimistic after today’s data, because the data is one-size-fits-all. It strengthens the likelihood that we will see at least one rate cut this year, maybe more, depending on the subsequent data trend,” he said. said Jaymeen Patel, senior investment product specialist at St.
Investors unanimously see a rate cut only in September. [0#BOEWATCH]
“If this stickiness in domestic price pressures continues, coupled with resilient economic activity, even a rate cut in August could be off the table,” said Zara Nokes, global market analyst at JP Morgan Asset Management.
In the market, rate-sensitive sectors, such as home improvement and home construction and real estate stocks, were the biggest losers, falling 2.9% and 1.9%, respectively.
However, industrial miners rose 0.8%, along with copper prices hitting seven-week highs. [MET/L]
Investors’ eyes are now on the central bank’s monetary policy decision on Thursday.
Among individual stocks, telecoms infrastructure firm Helios Towers was the mid-cap index’s biggest loser, falling 7.8% after a secondary placing of shares at a discount.
Anglo American gained 1.7% after the miner said it expects a 30% decline at its key copper mine in Chile in 2025.
Meanwhile, homebuilder Berkley Group fell 6.3% to the bottom of the benchmark index, despite raising its 2025 earnings forecast.
US markets were closed for a holiday on Wednesday.
