FTSE 100 Recovers From Early Weakness, Up Nearly 0.3%

(RTTNews) - After opening slightly down and drifting further lower subsequently, the U.K. market has regained lost ground and is up in positive territory around noon on Wednesday.

The benchmark FTSE 100, which eased to 9,160.65, recovered subsequently and was at 9,214.91, up 25.69 points or about 0.27%, a little while ago. +25.69(

Convatec Group is rising 5.7%. The stock is up on strong buying on news of a $300 million share repurchase plan.

United Utilities is gaining nearly 2%. Admiral Group, British American Tobacco, Severn Trent, Imperial Brands, Unilever, Coca-Cola Europacific Partners, Intertek Group and Relex are up 1 to 1.5%.

Polar Capital Technology Trust, Anglo American Plc, Marks & Spencer, ICG, Easyjet, Berkeley Group Holdings, Persimmon, Rolls-Royce Holdings, IAG, Taylor Wimpey, BP and Barratt Redrow are down 1 to 2%.

In economic news, UK consumer price inflation accelerated to an 18-month high in July on airfares and food prices, suggesting that the Bank of England is likely to delay further easing.

The consumer price index posted an annual growth of 3.8% after rising 3.6% in June, the Office for National Statistics reported Wednesday.

Inflation continued to remain stubbornly above the 2% target and hit the highest since January 2024, when the rate was 4%. Prices were forecast to climb 3.7% in July.

Core inflation that excludes prices of energy, food, alcohol and tobacco, rose to 3.8% from 3.7% in June.

On a monthly basis, consumer prices rose only 0.1%, following June's 0.3% gain.

At the August monetary policy meeting, the BoE had reduced its benchmark interest rate in a close call as members became more concerned about persistent inflation. The current 4% interest rate is the lowest since early 2023.

The bank projected inflation to peak at 4% in September but to fall back thereafter towards the 2% target.

British Chambers of Commerce Research Manager Stuart Morrison said there are little sign that inflation will be near the BoE's 2 percent target anytime soon.

As inflation was driven primarily by airfares, the BoE won't be too concerned, ING economist James Smith said. The economist expects a cut in November to be followed by two further moves next year.