FTSE 100 Rises 0.1% on Energy as UK Inflation Hits 3.5%
Updated
Updated · Reuters · Oct 21
FTSE 100 Rises 0.1% on Energy as UK Inflation Hits 3.5%
3 articles · Updated · Reuters · Oct 21
Summary
Britain's FTSE 100 added 0.1% to 10,752.88 after two straight declines, with BP, Shell and financial stocks lifting the blue-chip index while the FTSE 250 rose 0.3%.
UK inflation accelerated to 3.5% in September, above the 3.4% forecast, as the US-Israeli war on Iran drove up energy prices and strengthened expectations for a Bank of England move.
Money markets are now near certain of a 25-basis-point BoE rate hike in November, a backdrop that capped broader gains in London equities.
Government borrowing beat forecasts for a second consecutive month, pushing public debt above 3 trillion ahead of next week's budget, while HSBC said expectations for a market-friendly fiscal plan still limit FTSE upside.
Britain also approved the Jackdaw North Sea gas field, underscoring how energy security concerns are shaping policy as higher fuel costs ripple through markets.