FTSE 100 Live: FTSE 100 Rallies on Inflation Surprise as Builders and Banks Gain; Bunzl Leads Losers

The FTSE 100 Index began trading positively on Wednesday, following inflation readings that were lower than forecasted and continued to strengthen arguments for a timely interest rate cut from the Bank of England. Rising approximately 0.9% or 91 points, to 9,775, traders began shifting their interest towards sectors and stocks sensitive to interest rates, as well as deeper into the business cycle.

UK Inflation Data Provides Support For Interest Rate Totals

UK Consumer Price Inflation decreased from 3.6% for the month of October to 3.2% for the month of November, which is lower than analysts were anticipating (forecasted at 3.5%), and represents the lowest inflation level recorded since March. 

The downward trend in consumer price inflation was attributable largely to the continuing declines in food prices, a continued decrease in the price of tobacco, and the further declining price of many consumer clothing items. 

Services Inflation, another hotly debated index for the Bank of England, also displayed a slowdown trend within a declining 4.4% for November when compared to 4.7% in October. 

Negative implications for the British Pound were another result of the inflation news as the currency fell approximately 0.7% against the US Dollar during the Thursday session.

Gainers: Builders, Banks and Miners Lead the Charge

Housebuilder Persimmon rose 2.11% to £2,333 as lower borrowing costs improved the outlook for mortgage affordability. Barratt Redrow also increased by 2.32% to £370.10, along with other property-related names.

Banks added to the momentum, with HSBC gaining 2.79% to £1,142.80, and Barclays also adding 1.71% due to easing inflation, which supported sentiment across the financial sector. 

Fresnillo jumped 2.60% to £3,000 after silver prices hit record highs. Anglo American rose 2.19% to £2,900.

Energy majors BP and Shell gained around 2% as Brent crude rebounded toward the $60 per barrel level, lending further support to the index.

Losers: Bunzl Slumps, Defensives Underperform

Bunzl was the biggest loser, sliding nearly 6% to £2,088 after the workplace products supplier warned of slightly weaker operating margins in 2026. 

Despite reaffirming its outlook for the current year, the cautious margin guidance weighed heavily on investor sentiment.

Admiral Group dipped 0.70% to £3,120, 3I Group declined 0.47% to £3,195 and Croda International fell 0.33% to £2,753.

Other losers include Imperial Brands which declined 0.25% to £3,183, while Next fell 0.04% to £13,385, as investors rotated out of defensive and consumer-facing names into more cyclical sectors poised to benefit from rate cuts.

Serco Lifts Guidance, Shares Surge

Serco, the outsourcing group, rose more than 4% after upgrading its full-year outlook, lifting expected operating profit to around £270 million. 

The company cited strong demand across defence, justice, and citizen services contracts, which more than offset weaker immigration-related activity.

Serco also signalled a positive outlook for 2026, underpinned by a growing pipeline of government contracts and improved cash flow visibility.

Also Read: Top Stocks to Buy With $1,000 in 2026 for Future Returns

Global Market View

On Wall Street last night, the Nasdaq rose 0.2%, helped by strength from names like Tesla, Meta and Palantir. But the Dow Jones slid 0.6% and S&P 500 dipped 0.2% as investors worried about the unemployment rate climbing to 4.6%, its highest level since 2021.