FTSE 100 Live: Index Opens 7 Points Lower at 10,482 as May Inflation Stays at 2.8%

The FTSE 100 opened around 7 points lower at 10,482 even as UK inflation held steady in May, with a better services reading keeping the Bank of England cautious ahead of Thursday’s rate decision. Meanwhile, Brent crude futures fell 0.84% to $78.59 a barrel. US West Texas Intermediate (WTI) rose 0.95% to $75.33 ‌a barrel.

Gainers & Losers

Antofagasta surged 2.13% to £4,321, while Rolls-Royce advanced 1.80% to £1,418. Endeavour Mining climbed 1.75% to £4,297. Barratt Redrow moved higher, adding 1.73% to £259.50, while Barclays gained 1.73% to £495.35. Persimmon rose 1.72% to £1,097.

On the downside, Rio Tinto fell 1.39% to £7,782, while Shell slipped 1.24% to £3,030. British American Tobacco declined 1.18% to £4,534, and Halma shed 0.80% to £3,988. Meanwhile, London Stock Exchange Group eased 0.57% to £9,022, and Coca-Cola Europacific Partners edged lower by 0.41% to £7,375.

Inflation Remained Unchanged in May

Inflation was unchanged in May, failing expectations of a 3% surge. Data from the Office for National Statistics showed the consumer price index stayed at 2.8% last month. 

“The main upward movement came from transport with airfares, vehicle taxes and petrol prices all pushing up inflation,” Grant Fitzner, chief economist at the ONS, said. 

“These were offset by lower food prices, with decreases in inflation seen across a range of meat, dairy and vegetable items compared to last month as well as the cost of domestic heating oil, which fell back after climbing in recent months.”

Borrowing Costs Cool 

The yield on 10-year gilts has dropped nearly four basis points to 4.7% after the consumer price index undershot expectations. Meanwhile, on the 30-year, a drop of three basis points was seen. 

The bond market has enjoyed some cooling following the confirmation of a peace deal between the US and Iran, which brought down the price of oil and helped put a lid on fears of surging inflation.

PZ Cussons Shares Jump

PZ Cussons said it expects to report operating profit slightly above its forecast range of £53 million to £57 million for its financial year ending on 31 May. 

“This compares to an initial guidance range of £48-53 million provided at the start of the financial year,” it said. Shares were up over nine per cent on the news to near £100.

Rathbones Launches £20 million Share Buyback Programme

Rathbones has launched a fresh £20 million share buyback programme just one day after suspending thousands of client account inflows, as it looks to reduce its share capital. 

The firm will undergo a two-year remediation programme and stop taking on new enhanced due diligence clients, which is a major blow to the firm’s relationship with valuable customers. 

The actions are expected to rack up costs of £60 million; however, in yesterday’s announcement, it confirmed that the share buyback programme would begin shortly regardless. The group’s share price plunged 16.8% on Tuesday, reaching £1,624.

Also Read: Stock Market Today: Sensex Jumps 270 Points, Nifty50 Crosses 24,064

Global Market View

In the US, performance was mixed, with the tech-heavy Nasdaq jumping 1.89%. The Dow Jones Industrial Average gained 0.64%, and the S&P 500 fell 0.57%.

In Asia, South Korea’s Kospi jumped 1.3% to 8,841.6 points, while Tokyo’s Nikkei 225 increased 0.8%. Taiwan’s TAIEX rose 0.1%. China’s Shanghai Composite and Hang Seng dropped 0.1% and 0.7%, respectively. In India, both the Nifty 50 and Sensex reported gains, rising 0.4% respectively.