Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
London stocks on the FTSE 100 rose in early trade on Wednesday as investors mulled a slightly bigger-than-expected drop in UK inflation and looked ahead to the Spring Statement.
At 0825 GMT, the FTSE 100 was up 0.3% at 8,686.38, while sterling was down 0.3% against the dollar at 1.2902.
Figures released earlier by the Office for National Statistics showed that inflation eased a little more than expected in February as clothing prices fell.
Consumer price inflation eased to 2.8% from 3% in January. Economists were expecting a smaller decline to 2.9%.
ONS chief economist Grant Fitzner said: “Clothing prices, particularly for women’s clothing, was the biggest driver of this month’s fall.
“This was only partially offset by small increases, for example, from alcoholic drinks.”
Core CPI – which excludes energy, food, alcohol and tobacco – rose 3.5% in February, down from 3.7% the month before.
The data also showed that services inflation was unchanged at 5%, versus expectations for a fall to 4.9%.
Paul Dales, chief UK economist at Capital Economics, said the dip in CPI inflation “is a bit of a red herring” as inflation will probably be back above 3.0% in April once energy and water bills increase and around 3.5% by September.
“That and the risk of spillovers into wages will probably mean the Bank of England will press pause on interest rate cuts at some point in the coming months,” he said.
“If that were to prompt a further rise in market rate expectations, today may not be the only time this year the Chancellor has to tighten fiscal policy to compensate for higher borrowing costs.”
Looking ahead to the rest of the day, all eyes will be on Chancellor Rachel Reeves’ Spring Statement.
Kathleen Brooks, research director at XTB, said: “The Chancellor has said that this is not a fiscal event, however, she is expected to announce a swathe of spending cuts that have been well signalled in recent days.
“Big cuts are expected across government budgets, the civil service is expected to see a large reduction in costs and in personnel, and £5bn is expected to be shaved off of the disability benefits bill. Reports suggest that there could be further cuts to benefits announced today, with some universal credit benefits frozen until 2030 in an effort to cut government spending.
“The focus on spending cuts is designed to help Reeves rebuild her fiscal headroom, which has been eroded by a sharp reduction in the Office for Budget Responsibility’s forecast for UK growth.
“There are very few spending increases that are expected to be announced today, bar some small spending pledges for homes and technical colleges. If October was the Budget of tax rises, then this is the Budget of spending cuts. The balance between taxes and spending plans have, so far, been absorbed by financial markets well. But will it stay this way?”
In equity markets, defence firm Babcock was the top gainer on the FTSE 100 after saying it has been awarded a five-year contract extension with the Ministry of Defence worth around £1bn.
Ocado surged after an upgrade to ‘overweight’ from ‘neutral’ by JPMorgan, which identified “several reasons to be more optimistic”.
Bakkavor rallied following a report that convenience food maker Greencore has lifted its bid for the rival. Bakkavor was considering the enhanced proposal, newswire Bloomberg reported, citing unnamed sources.
Two takeover bids from Greencore were rejected by Bakkavor this month, with the latest cash-and-stock offer valued at 189p a share valuing the target at £1.14bn.
Housebuilder Vistry tumbled as it reported a slump in profits after a “disappointing” year amid challenging market conditions and cost forecasting issues in its South Division in the last quarter of the year.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Marks And Spencer Group Plc | +2.14% | +7.10 | 339.60 |
| 2 |  |
Glencore Plc | +1.33% | +4.05 | 308.55 |
| 3 |  |
Next Plc | +1.29% | +126.00 | 9,922.00 |
| 4 |  |
Shell Plc | +1.19% | +33.00 | 2,798.00 |
| 5 |  |
South32 Limited | +1.00% | +1.70 | 172.10 |
| 6 |  |
Coca-cola Europacific Partners Plc | +0.93% | +60.00 | 6,540.00 |
| 7 |  |
Severn Trent Plc | +0.86% | +21.00 | 2,451.00 |
| 8 |  |
Pershing Square Holdings Ltd | +0.83% | +32.00 | 3,908.00 |
| 9 |  |
Tesco Plc | +0.82% | +2.70 | 332.50 |
| 10 |  |
Reckitt Benckiser Group Plc | +0.82% | +42.00 | 5,190.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Aib Group Plc | -3.44% | -19.00 | 533.00 |
| 2 |  |
Admiral Group Plc | -2.66% | -77.00 | 2,815.00 |
| 3 |  |
Smiths Group Plc | -1.83% | -37.00 | 1,983.00 |
| 4 |  |
Wise Plc | -1.30% | -12.50 | 949.50 |
| 5 |  |
Gsk Plc | -1.24% | -18.50 | 1,467.50 |
| 6 |  |
Standard Chartered Plc | -1.17% | -14.00 | 1,184.00 |
| 7 |  |
Astrazeneca Plc | -1.15% | -130.00 | 11,186.00 |
| 8 |  |
Auto Trader Group Plc | -1.08% | -8.20 | 748.20 |
| 9 |  |
Antofagasta Plc | -0.83% | -16.00 | 1,910.00 |
| 10 |  |
Experian Plc | -0.69% | -25.00 | 3,598.00 |
US close: Stocks manage small gains on Ukraine-Russia deal
Wall Street closed slightly higher on Tuesday, extending gains from the prior session amid reports of a partial ceasefire agreement between Ukraine and Russia.
The deal, which covers energy infrastructure and the Black Sea, did not seem to significantly sway investor sentiment as market participants continued to look for clarity on the size and shape of president Donald Trump’s next round of tariffs.
At the close, the Dow Jones Industrial Average was up 0.01% to 42,587.50, while the S&P 500 gained 0.16% to 5,776.65.
The Nasdaq Composite outperformed, rising 0.46% to 18,271.86, supported by strength in technology shares.
“US stocks squeezed out modest gains on Tuesday, brushing off weaker consumer confidence data as traders held their breath ahead of what’s shaping up to be a high-stakes tariff showdown on 2 April,” said SPI Asset Management managing partner Stephen Innes.
“The S&P 500 edged up 0.2%, powered once again by mega-cap tech, though beneath the surface, thin volumes and lousy breadth signalled that investor conviction remains paper-thin.
“The drop in consumer confidence wasn’t exactly a curveball – Americans are already bracing for higher prices from tariffs, which means increased cost-of-living stress, weaker demand for domestic goods, and eventually a hit to jobs. It’s economics 101.”
Consumer confidence falls sharply in March
In economic news, the Conference Board’s consumer confidence index fell sharply in March, dropping 7.2 points to 92.9.
Notably, the gauge of consumer expectations fell to its lowest level in 12 years, underscoring a decline in sentiment about future economic conditions.
Manufacturing activity also showed signs of strain.
The Richmond Federal Reserve’s regional factory index dropped to -4 in March from 6.0 the previous month, well below the consensus forecast of 8.0.
A negative reading indicates contraction in the region’s manufacturing sector.
Adding to the cautious tone, HSBC downgraded its view on US equities by two notches, citing persistent policy uncertainty.
Analysts at the bank said they saw little chance of clarity emerging after 2 April, when the Trump administration’s reciprocal tariffs are scheduled to take effect.
According to HSBC, extended uncertainty could begin to weigh more visibly on both leading indicators and concrete economic data.
Disney, Apple in the green, Merck falls despite licensing deal news
In equities, Walt Disney shares rose 1.43% after the company confirmed the results of its 20 March annual shareholder meeting.
All board members were re-elected, though Mary T Barra received the most opposition among candidates.
Shareholders ratified the appointment of PwC as auditors for 2025 and approved an advisory vote on executive compensation.
Three shareholder proposals – related to climate risk reporting, inclusion in the Corporate Equality Index, and ad buyer risk disclosures – were all defeated, with the climate-related measure receiving the strongest support.
Elsewhere, Apple gained 1.37% after announcing dates for its upcoming Worldwide Developers Conference.
The event, scheduled for 9-13 June and primarily online, would showcase updates to its operating systems across devices, including iPhones and iPads.
On the downside, Merck fell 4.81% following news of a new licensing deal with Jiangsu Hengrui Pharmaceuticals.
The agreement gives Merck exclusive rights to develop HRS-5346, a phase 2 cardiovascular drug candidate.
Citi maintained a ‘buy’ rating and a $115 price target, but the announcement weighed on investor sentiment.
Retail giant Walmart declined 3.12% as investors remained cautious ahead of the 2 April implementation of new tariffs under president Trump.
Uncertainty over the scope and impact of the measures pressured shares of the retail giant.
Wednesday newspaper round-up: Block, Boeing, Bet365
Block, Jack Dorsey’s financial technology company, plans to let go almost 1,000 current employees, while making other changes to its operations in its second such move in just over a year. Dorsey, who co-founded and previously ran Twitter before co-founding Block in 2009, informed employees of the impending cuts on Tuesday in an email, viewed by the Guardian, titled “smaller block”. The layoffs will impact more than 930 employees, with another nearly 200 managers being moved into non-management roles, and another nearly 800 open jobs will be closed, according to the email. – Guardian
A US judge ordered a 23 June trial date in the Department of Justice’s criminal fraud case against Boeing over the American planemaker’s alleged misrepresentations to regulators about a key system on the 737 Max. Families of the victims of two deadly Max crashes, which claimed 346 lives, hailed an “opportunity for justice” on Tuesday. Boeing said it was in “good faith discussions” with the justice department. The US federal government was accused last year of cooking up a “sweetheart plea deal” with Boeing, after it emerged the company had been given the chance to enter a guilty plea and pay a fine as part of its sentence, avoiding a high-profile trial. – Guardian
Donald Trump’s trade war will weaken America’s economic strength and fuel concerns about the country’s ballooning deficit, an influential credit rating agency said. In a stark warning to investors, Moody’s said that Mr Trump’s tariff policy would “weigh on business investment, dampen consumer confidence and prevent the Fed from reducing interest rates”. – Telegraph
The online betting giant owned by one of Britain’s richest executives is exiting the online gambling sector in China as it looks to focus on its core markets. Bet365, the family-owned gambling business run by Denise and John Coates, confirmed reports that it will call time on its operations in China. According to EGR, the gaming industry news site, Bet365’s account on X noted that as of March 27 the operator will “unfortunately no longer be providing our services to customers in China”. – The Times
A cryptocurrency venture backed by President Trump and his family is planning to launch a stablecoin backed by US government debt. World Liberty Financial, a crypto company founded by Donald Trump and his sons, Donald Jr, Eric and Barron, two months before the US presidential election last year, said the stablecoin, called USD1, would be fully backed by US treasuries, dollars and other cash equivalents. – The Times
