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After opening slightly down and drifting further lower subsequently, the U.K. market has regained lost ground and is up in positive territory around noon on Wednesday.<\/p>\n
The benchmark FTSE 100, which eased to 9,160.65, recovered subsequently and was at 9,214.91, up 25.69 points or about 0.27%, a little while ago.
+25.69(<\/p>\n
Convatec Group is rising 5.7%. The stock is up on strong buying on news of a $300 million share repurchase plan.<\/p>\n
United Utilities is gaining nearly 2%. Admiral Group, British American Tobacco, Severn Trent, Imperial Brands, Unilever, Coca-Cola Europacific Partners, Intertek Group and Relex are up 1 to 1.5%.<\/p>\n
Polar Capital Technology Trust, Anglo American Plc, Marks & Spencer, ICG, Easyjet, Berkeley Group Holdings, Persimmon, Rolls-Royce Holdings, IAG, Taylor Wimpey, BP and Barratt Redrow are down 1 to 2%.<\/p>\n
In economic news, UK consumer price inflation accelerated to an 18-month high in July on airfares and food prices, suggesting that the Bank of England is likely to delay further easing.<\/p>\n
The consumer price index posted an annual growth of 3.8% after rising 3.6% in June, the Office for National Statistics reported Wednesday.<\/p>\n
Inflation continued to remain stubbornly above the 2% target and hit the highest since January 2024, when the rate was 4%. Prices were forecast to climb 3.7% in July.<\/p>\n
Core inflation that excludes prices of energy, food, alcohol and tobacco, rose to 3.8% from 3.7% in June.<\/p>\n
On a monthly basis, consumer prices rose only 0.1%, following June’s 0.3% gain.<\/p>\n
At the August monetary policy meeting, the BoE had reduced its benchmark interest rate in a close call as members became more concerned about persistent inflation. The current 4% interest rate is the lowest since early 2023.<\/p>\n
The bank projected inflation to peak at 4% in September but to fall back thereafter towards the 2% target.<\/p>\n
British Chambers of Commerce Research Manager Stuart Morrison said there are little sign that inflation will be near the BoE’s 2 percent target anytime soon.<\/p>\n
As inflation was driven primarily by airfares, the BoE won’t be too concerned, ING economist James Smith said. The economist expects a cut in November to be followed by two further moves next year. <\/p>\n<\/p>\n<\/div>\n