The FTSE 100 Index Closes 0.96% Higher

The FTSE 100 clawed back early losses to close about 1% up at 10,432 on Wednesday, as investors mulled better-than-expected UK inflation data and weighed a potential resolution to the Middle East conflict. Headline inflation fell to 2.8% in April, below the 3% forecast and the lowest since March 2025, which reduced bets on BoE rate hikes. Regarding geopolitics, President Trump said the conflict would end “very quickly,” with Vice President JD Vance reporting progress in talks with Tehran. Attention turns to first-quarter results from US chip giant Nvidia and the FOMC minutes. Retailer Marks & Spencer was the standout performer, surging 6.6%, on higher annual sales and profit growth forecasts. Babcock (5.3%) was boosted by an upgrade to ‘buy’ from ‘add’ at Peel Hunt. Heavyweight miners rallied as copper prices advanced, with Anglo American, Antofagasta and Glencore all up. Experian dropped 3%, leading losses, as FY2027 revenue guidance disappointed even with a $1 billion share buyback.

The FTSE 100 Index rose 99 points or 0.96 percent on Wednesday to close at 10429 points. Leading the gains are Marks & Spencer (7.37%), Rolls-Royce (5.15%) and Antofagasta (4.74%). Top losers were Experian (-3.17%), Auto Trader (-2.50%) and The Sage Group (-2.07%).

The FTSE 100 slipped 0.3% to 10,300 on Wednesday as investors processed a steeper-than-expected drop in UK inflation while remaining wary of the unresolved Iran conflict. Headline inflation fell to 2.8% in April, below the 3.0% forecast and the lowest since March 2025, after the energy regulator’s price cap took effect. Chancellor Rachel Reeves welcomed the data, stating the UK has "the right economic plan" and warning against policy shifts that could destabilize the economy. However, crude prices remained near four-year highs as stalled US-Iran talks kept inflationary pressures elevated. Markets now price in just two BOE rate hikes by December, down from nearly three last week, but reversing pre-war easing expectations. Among individual stocks, Experian fell 4% after announcing a $1 billion buyback and meeting annual guidance, with UK and Ireland underperforming and concerns over AI-related disruptions. Marks & Spencer rose 2% on higher annual sales and profit growth forecasts.