London stocks rise on softer-than-expected inflation data. The benchmark indexes in the United Kingdom finished the day higher on Wednesday, putting them on course for a three-day winning streak as a result of data showing that October inflation was lower than predicted. Additionally, a rise in the prices of significant commodities drove mining and energy stocks higher.
At 8:04 GMT, the FTSE 100 (.FTSE), centered on commodities, was up 0.9%, while the FTSE 250 (.FTMC), focused on mid-cap companies, gained 0.4%.
Inflation in the United Kingdom decreased by more than projected in October due to falling home energy costs compared to the same time a year earlier. The persistent price increase in the services sector moderated, providing some respite to the Bank of England.
The optimistic outlook led to a surge in rate-sensitive equities, with the top gainer homebuilders index (.FTNMX402020) adding 2% and the banking sector (.FTNMX301010) gaining 1.3%. Changes in interest rates may have an impact on both of these sectors.
As the prices of most metals increased due to a weaker dollar and falling bond rates, precious metal miners (.FTNMX551030) gained 1.4%, while industrial metal miners (.FTNMX551020) gained 1.7%. These increases may be attributed to the fact that precious metal miners were up.
Experian (EXPN.L) shares increased by 3.3% after the world’s largest credit data firm announced a rise in earnings for the year’s first half. The company benefited from sustained demand in major countries such as Europe and North America.
SSE Plc (SSE.L), a British electricity generator and network operator, revealed half-yearly results that were higher than its expectations, leading to a 2.2% increase in the price of its shares.