The FTSE 100 fell on Wednesday, on a mixed day for stocks in London, as investors weighed inflation data in Europe and the US, lower oil prices and strong domestic economic growth data.
In London, the FTSE 100 index ended down 30.71 points, 0.3%, at 10,606.00. The FTSE 250 rose 165.18 points, 0.7%, to 24,539.99, and the AIM all-share firmed 1.24 points, 0.2%, at 787.40.
European markets were hit by a string of strong inflation readings. The CAC 40 in Paris ended down 0.9%, while the DAX 40 in Frankfurt closed 0.8% lower.
France’s annual inflation rate hit its highest level since February 2024, while in Italy, inflation was at 4.2%, nearly a full percentage point above the rate recorded in August. In Germany, the annual consumer price inflation rate is expected to have risen to 3.3% in September from 2.9% in August and 2.8% in July.
Analysts now expect euro-wide inflation figures on Friday to be stronger than expected, putting further pressure on the European Central Bank to raise interest rates.
Mariana Monteiro, analyst at JPMorgan, thinks euro area headline HICP inflation may increase from 3.2% on-year in August to 3.9% on-year in September, higher than her original 3.6% on-year forecast.
In New York, the mood was brighter. The Dow Jones Industrial Average was up 0.1% at the time of the closing bell in London. The S&P 500 was 0.6% higher, and the Nasdaq Composite climbed 1.0%.
Figures in the US showed the economy grew faster-than-expected in the second quarter, while a closely watched inflation figure cooled more than projected.
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