The FTSE 100 opened 3.60 points lower at 10,646.73 as investors awaited US inflation data due later today and weighed Bank of England signals on rate hikes. Brent crude futures fell 0.55% to USD 106.3 per barrel. US West Texas Intermediate (WTI) declined 0.45% to USD 94.56 per barrel.
The sterling was quoted at USD 1.3272 on Wednesday morning, rising from USD 1.3249 during closing time on Tuesday. Against the euro, sterling firmed to EUR 1.1838 from EUR 1.1834.
Gainers & Losers
On the upside, Burberry Group rose 2.31% to 1,061.50p, while British Land advanced 1.40% to 404.80p. Babcock International gained 1.35% to 899.20p, and Barratt Redrow climbed 1.03% to 295.30p. Informa increased 1.02% to 890.40p, while Tritax Big Box REIT added 0.98% to 143.80p.
On the downside, Admiral Group fell 2.45% to 3,658.00p, while Computacenter declined 2.37% to 5,560.00p. Fresnillo slipped 1.40% to 2,678.00p, and London Stock Exchange Group dropped 1.03% to 8,264.00p. Lion Finance Group decreased 0.95% to 12,520.00p, while Rio Tinto lost 0.76% to 6,944.00p.
Softcat Shares Decline
Shares of British IT products and services provider Softcat fell over 7% on Wednesday after it forecast slower growth in underlying operating profit for the financial year to July 2027, despite a 24.7% rise in annual gross profit.
Underlying operating profit rose 19.4% to GBP 215.1 million in the year ended July 31. The forecast excludes any contribution from its acquisition of GDT, a US-based multi-vendor IT solutions provider announced after the year-end.
Gross profit rose to GBP 616.3 million, helped by "strong underlying progress across all technology areas and customer groups and exceptional performance in corporate.”
Robert Walters Sees Fees Rise
Recruiter Robert Walters witnessed a rise in UK fees in the third quarter after a boost from specialist recruitment. Net UK fees were up 10%, with specialist recruitment powering the headline move with a 14% rise. This also outpaced wider group fees, which grew just one per cent to GBP 69.7 million. Monthly expenses dropped to GBP 22 million following an eight per cent reduction in headcount.
Bond Yields Decline
Government bond yields fell following reports that John Healey is set to avoid more borrowing to pay for Budget commitments.
The yield on the 10-year gilt is down three basis points today to 5.4%. The Financial Times reported that the Chancellor is expected to pay for all new Budget giveaways with either spending cuts or tax hikes. Healey has said this week that he is committed to restoring the UK’s fiscal “credibility” on the world stage.
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Global Market View
In the US, the S&P 500 ended almost flat, down 0.02% to close at 7,805.45, while the NASDAQ Composite dropped 0.15% to 27,204.38. The Dow Jones Industrial Average slipped 180.45 points, or 0.35%, to close at 51,670.10.
In Asia, Tokyo's Nikkei 225 fell 0.05% to 67,744.29, while China’s Shanghai Composite dipped 0.88%. Hong Kong’s Hang Seng fell 0.058%, and South Korea’s Kospi declined 0.44%. In India, both the Nifty 50 and the Sensex advanced by 0.13% and 0.43%, respectively.