FTSE 100 Rises On Soft Inflation Data

(RTTNews) - The UK stock market's FTSE 100 moved up sharply Wednesday morning, lifted by gains in energy and mining stocks. Worries about rising tensions in the Middle East failed to deter investors from picking up stocks as data showing a drop in the nation's consumer price inflation helped lift sentiment.

The FTSE 100, which climbed to 10,733.96, was up 127.29 points or 1.2% at 10,713.20 a few minutes before noon.

Data from the Office for National Statistics showed UK consumer price inflation slowed in June to the lowest since March last year, climbing 2.6% year-on-year, slower than the 2.8% increase in May. Prices were expected to climb 2.7%.

On a monthly basis, consumer price edged up 0.1%, as expected, compared to an increase of 0.2% in May.

Core inflation that excludes energy, food, alcohol and tobacco remained unchanged at 2.6% in June.

In a separate communiqué, the ONS said output price inflation slowed to 3.5% in June from 3.7% in May. Similarly, input price inflation weakened to 7.3% from 9.3% in the previous month.

Miners Endeavour Mining and Fresnillo gained 3.5% and 2.9%, respectively. Fresnillo reaffirmed production guidance for the year 2026, 2027 and 2028 after delivering a solid operational performance during the second quarter of 2026.

Antofagasta climbed 1.8%, Glencore moved up 1.5% and Rio Tinto advanced 1%.

Energy stocks Shell and BP gained about 1.3% and 1.2%, respectively. Bank stocks Standard Chartered, HSBC Holdings and Lloyds Banking Group also posted impressive gains.

Segro climbed 3.75%. Prudential, Airtel Africa, Weir Group, SSE, Reckitt Benckiser, Aviva, Admiral Group, Experian, Centrica, Standard Life, Persimmon, Barratt Redrow, Tritax Big Box REIT, AstraZeneca and Rolls-Royce Holdings gained 1.5%-3%. BT Group, Melrose Industries and Spirax Group also moved up sharply.

British pub chain J D Wetherspoon plummeted almost 7% after issuing a warning that its annual profit would undershoot expectations.

Burberry Group shed about 2.1%. IG Group Holdings drifted down 1.6%. The Sage Group, Games Workshop, Halma, Next, Entain, Investec and Metlen Energy & Metals also showed weakness.