The FTSE 100 opened flat on Wednesday, trading around 10,130 as gains in mining and consumer stocks countered weakness in banks and select defensives. Investors remained cautious after UK inflation data came in hotter than expected, reducing the chances of a near-term rate cut by the Bank of England.
Mining stocks provided the strongest support to the index, with Endeavour Mining rising 4.23% to £4,386, supported by gold prices gaining another 2% to $4,860 per ounce, reflecting continued demand for safe-haven assets.
Anglo American gained 3.33% to £3,351, while Rio Tinto climbed 2.99% to £6,503 after its year-end production update reassured markets about output stability and operational discipline.
Among others, Easyjet advanced 2.45% to £488.70, while Haleo rose 2.31% to £381.50.
Banking stocks underperformed as higher inflation dampened hopes of near-term rate cuts.
Lloyds Banking Group slipped 1.61% to £100.65, while Barclays fell 1.63% to £471.89. Investors remain concerned that sustained higher rates could slow credit growth and weigh on consumer demand.
Elsewhere, Experian dropped 4.49% to £3,082, while London Stock Exchange Group fell 1.67% to £8,830.
Admiral Group declined 2.08% to £3,012 and Games Workshop backed 0.28% to £18,050.
Burberry surged 4.88% as its sales grew in the third quarter, recovering from earlier losses.
Retail sales jumped 3% quarter-on-quarter as the group’s growth strategy continued to pick up pace. Revenue from retail notched up to £665 million in the 13 weeks to 27 December, compared to £659 million in the year prior.
JD Sports Fashion rose 2.02% at it reported falling UK sales over the key festive season and cautioned that it expects market growth to be “muted” over the year ahead.
The group posted a 5.3% drop in UK like-for-like sales in the nine weeks to 3 January as it said demand “softened” in the first half of December across Europe.
Full-year profit forecasts remain unchanged, as most analysts expect a drop to £849 million from £923 million in 2024-25.
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UK consumer price inflation rose to 3.4% in December, up from 3.2% in November and above market forecasts. According to official data, the increase was driven by higher tobacco prices, airfares, and food costs.
The print has effectively ruled out a Bank of England rate cut at its February meeting, though economists still expect inflation to trend back toward 2% by April.