The FTSE 100 opened flat at 10,729.05 as investors awaited UK inflation data, with sentiment also weighed down by renewed uncertainty in the Middle East and a sell-off across Asian markets. Brent crude futures rose 0.86% to $91.80 per barrel. US West Texas Intermediate (WTI) advanced 0.91% to $85.71 per barrel.
Sterling was quoted at $1.3541 early Wednesday, slightly higher than $1.3539 at the London equities close on Tuesday. Against the euro, sterling fell to €1.1687 from €1.1693 a day prior.
On the upside, Melrose Industries climbed 1.21% to 493.70p. AstraZeneca advanced 1.15% to 11,942p, while Weir Group gained 1.01% to 2,612p. BP rose 0.98% to 538.70p, Rio Tinto added 0.90% to 7,183p, and BT Group increased 0.89% to 203.50p.
On the downside, Smith & Nephew fell 3.74% to 1,069p. IG Group Holdings declined 2.38% to 1,352p, while Experian dropped 1.11% to 2,843p. Spirax Group slipped 0.86% to 6,950p, London Stock Exchange Group lost 0.85% to 8,434p, and Lion Finance Group edged 0.54% lower to 12,840p.
The Competition and Markets Authority (CMA) has opened an investigation into Trainline regarding the presentation of certain UK fees in its booking process, according to a press release issued Wednesday.
The investigation falls under the Digital Markets, Competition and Consumers Act 2024. The inquiry focuses on how certain fees are displayed throughout the booking flow on Trainline’s platform.
Trainline stated it has engaged with the CMA over several months and is taking steps to enhance the presentation of certain fees.
Borrowing costs in some of the world’s leading economies surged to their highest levels since the 2008 financial crisis on Tuesday.
The cost of long-term debt surged in the UK, the US, Germany and Japan as investors reacted to rising inflation, government debt levels and spending on AI.
Oil prices also jumped on Tuesday, with Brent crude passing $90 per barrel, after the ceasefire between the US and Iran expired. The UK 10-year gilt yield rose to 5.85%, reaching its highest level since July, while the interest rate on US borrowing over 30 years hit 5.33%.
UK consumer prices rose 0.3% last month, in line with forecasts and up from June's 0.1% monthly increase. On a year-on-year basis, CPI remained at 2.6%, which was slightly ahead of the forecast of 2.5%.
Producer input prices rose 4.9%, well below forecasts of 6.6% and slowing from 7.4% previously. Core PPI rose 0.6%, against 0.5% previously, while core RPI accelerated to 0.6% from 0.3%.
The ONS's deputy director for prices, Mike Hardie, says inflation was "driven by a sharp increase in gas prices following this month’s change to the energy price cap. This was the largest rise in gas prices for almost four years."
Also Read: US Stocks Fall as Rising Bond Yields and Oil Prices Pressure AI Tech Shares
In the US, Wall Street ended in the red overnight, led by a sell-off in technology and semiconductor stocks. The Nasdaq Composite dropped 1.3%, while the S&P 500 fell 0.7% and the Dow Jones slipped 0.2%.
In Asia on Wednesday, Tokyo's Nikkei 225 fell 3.16% to 65,326.42, while China’s Shanghai Composite dipped 2.4%. Hong Kong’s Hang Seng advanced 0.0068%, and South Korea’s Kospi edged lower by 5.8%. In India, both the Nifty 50 and the Sensex fell by 0.39% and 0.44%, respectively.
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