FTSE 100 Live: FTSE 100 Gains on Softer Inflation, Barclays and Housebuilders Lead Market Rally

The FTSE 100 opened 0.5% or 44.74 points higher at 9,471.73, supported by a softer-than-expected UK inflation report that reignited hopes of a potential Bank of England rate cut. The upbeat mood contrasted sharply with earlier predictions of a flat start to trading, as investors cheered the possibility of easing borrowing costs.

Strong Performers: Builders and Financials Surge

Housebuilding and financial stocks were among the biggest beneficiaries of the improved inflation outlook. 

Shares of Berkeley Group Holdings jumped 2.68% to £4,134, while Persimmon climbed 2.38% to £1,207. 

Rio Tinto advanced 2.37% to £5,218, Babcock International gained 2.30% to £1,199, and Phoenix Group Holdings rose 2.30% to £668.5. 

The rally extended to real estate firms, with Land Securities and Segro also trading higher amid optimism for lower mortgage rates.

Barclays was another major gainer, climbing 3% to £375.5 after reporting strong results. The bank upgraded its profitability guidance for 2025 and announced a £500 million share buyback.

Underperformers: Industrials and Consumer Goods Dip

A few industrial and consumer names weighed slightly on the index. Spirax Group slipped 0.87% to £6,865, Diploma fell 0.55% to £5,395, Reckitt Benckiser eased 0.48% to £5,848, and Bunzl declined 1.14% to £2,434. 

Analysts said margin pressures and softer global industrial demand continued to affect these sectors.

IPO Activity and Corporate Updates

Princes Group, known for brands like Napolina and Crisp N’ Dry, announced plans for an IPO valuing the company between £1.16 billion-£1.24 billion. The firm is looking to raise £400 million to assist with acquisitions in the future.

Shawbrook also published its IPO price range of £1.8 billion to £2 billion, signaling renewed appetite for listings in London.

JLR Cyberattack Causes £1.9 Billion Economic Impact

A new report from the Cyber Monitoring Centre (CMC) estimated that the recent Jaguar Land Rover (JLR) cyberattack has cost the UK economy around £1.9 billion, marking it as the most financially damaging cyber event in the nation’s history. 

Also Read: US Stock Market Today: Dow Jones Jumps 0.7% as Gold Drops Over 5% Amid Strengthening Dollar

Inflation and Commodity Outlook

UK inflation held steady at 3.8% in September, below forecasts of 4%. The figure boosted expectations that the Bank of England could cut rates by early 2025, though analysts cautioned that inflation remains nearly double the BoE’s 2% target. The pound weakened 0.3% to $1.33 following the data.

Gold prices stabilized at $4,142 per ounce after plunging 5% in the previous session, its steepest fall in five years, while Brent crude rebounded 1.5% to $62.25 a barrel amid renewed supply-side concerns linked to geopolitical tensions between Russia and the West.