The FTSE 100 opened 26.88 points lower at 10,706.12 as higher-than-expected UK inflation reinforced concerns that the Bank of England may have to raise interest rates. Brent crude futures rose 0.85% to USD 109.7 per barrel. US West Texas Intermediate (WTI) advanced 0.63% to USD 98.44 per barrel.
The British pound stayed steady against the US dollar at USD 1.3376 early Wednesday, matching its Tuesday closing price. Meanwhile, it grew slightly stronger against the euro, rising to EUR 1.1912 from EUR 1.1901.
Gainers & Losers
On the upside, Ithaca Energy climbed 3.55% to 303.60p, while Computacenter advanced 2.02% to 5,040.00p. Scottish Mortgage Investment Trust gained 1.82% to 1,567.00p, and BP rose 1.62% to 615.60p. Lion Finance Group increased 1.14% to 12,460.00p, while Polar Capital Technology Trust added 1.12% to 630.50p.
On the downside, 3i Group declined 4.96% to 2,300.00p, while Next slipped 0.59% to 15,105.00p. London Stock Exchange Group fell 0.87% to 8,668.00p, and Unilever dropped 1.35% to 4,837.50p. AstraZeneca decreased 0.43% to 12,564.00p, while Fresnillo lost 2.01% to 2,635.00p.
UK Inflation Surges
Inflation has surged to 3.5%, new figures have shown, coming in 0.1% higher than forecast. Grant Fitzner, chief economist at the Office for National Statistics, said, “Inflation climbed notably in September to its highest annual rate in almost a year.”
Increased fuel prices were again the main driver, with the cost of diesel the highest since July 2022. “Other upward pressures included airfares and, to a lesser extent, computer games, and live events, which are often volatile,” Fitzner further added.
Segro Fastens Data Centre Plans
Segro is holding talks to host a ‘major hyperscaler’ at its first data centre in West London, as the property firm nears a takeover by its US rival. The group's data center portfolio drove GBP 70 million in new headline rent year-to-date, marking a 32% increase compared to the same period last year.
The property firm’s occupancy has increased by 20 basis points to 94.7% in recent months and rose an average of 43% in income from rent reviews. Segro’s GBP 14 billion takeover by US real estate firm Prologis was approved by shareholders last month and will conclude in the first half of next year.
Aberdeen’s AUMA Rose
Aberdeen recorded a 4% increase in assets under management and administration (AUMA) to GBP 578.9 billion, as Interactive Investors’ ‘strong growth continued.’ The division reported a 58% rise in year-to-date net inflows of GBP 9.3 billion. Customer numbers jumped 8% to 533,000, while AUMA hit GBP 111.8 billion.
The group said it had completed the sale of some of its stake in Standard Life, leaving its holding at 5.2%. The sale generated GBP 430 million, which it plans to deploy into securing ‘profitable growth.’
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Global Market View
In the US, the performance on Wall Street was mixed, with the Dow Jones Industrial Average up 1%, the S&P 500 up 0.3%, but the Nasdaq Composite ending marginally lower.
In Asia, Tokyo's Nikkei 225 rose 0.85% to 64,621.44, while China’s Shanghai Composite edged down by 0.6%. Hong Kong’s Hang Seng declined 0.89%, and South Korea’s Kospi rose 3.29%. In India, both the Nifty 50 and the Sensex advanced by 0.69% and 0.55%, respectively.