FTSE 100 treads water after UK inflation jump
The UK's FTSE 100 edged higher on Wednesday in a mixed session for European stock markets, as new data showed UK inflation jumped to the highest level in more than a year.
The blue chip index rose 5.34 points, or 0.06%, to close at 8,786.46, with miners helping offset heavy losses for retailer JD Sports.
The FTSE 250 index, which is more UK-focused, fell 0.7% following higher-than-expected inflation figures from the Office for National Statistics (ONS).
Consumer Prices Index (CPI) inflation leapt to 3.5% in April, up from 2.6% in March and the highest rate since January 2024, the ONS said.
The sharp increase reflected a raft of bills rising at the start of the month, including gas and electricity and water bills.
James Smith, developed markets economist for ING, said the data 'puts the final nail in the coffin of a Bank of England rate cut in June' which he said 'already looked highly unlikely'.
'More generally, surveys show that pricing power is ebbing away,' he said, adding that another interest rate cut in August was likely, 'and the quarterly pace of rate cuts can continue through this year and into 2026'.
Meanwhile, it was a mixed session elsewhere in Europe, with Germany's Dax index climbing 0.34%, while France's Cac 40 fell 0.4%.
In the US, losses extended for the nation's top indexes. The S&P 500 was down about 0.2%, and Dow Jones was falling by 0.8% by the time European markets closed.
The pound was strengthening against the US dollar, rising 0.4%, at 1.345, and down around 0.1% against the euro, at 1.186.
In company news, shares in FTSE 100-listed JD Sports tumbled by a tenth after the sportswear retailer revealed a drop in profits for the past year.
The company said adjusted pre-tax profits dropped by 4% to £923 million for the year to February, largely due to investment in infrastructure and security.
But it also flagged 'volatility' in the face of new US tariffs which are expected to potentially raise costs for its customers across the pond. Shares in JD closed 10.6% lower.
Marks & Spencer said the damaging cyber attack which has halted orders on its website could cost the company around £300 million.
But chief executive Stuart Machin said the incident was a 'bump in the road' and that the retailer would emerge in 'better shape'.
The company reported a higher-than-expected adjusted pre-tax profit of £875.5 million for the year to March, a fifth higher than the previous year. Shares in M&S closed 2.7% higher.
The biggest risers on the FTSE 100 were Fresnillo, up 44p to 1,085p, Babcock, up 30p to 890p, Endeavour Mining, up 60p to 2,162p, Phoenix Group, up 17p to 638.5p, and Severn Trent, up 62p to 2,775p.
The biggest fallers on the FTSE 100 were JD Sports, down 9.86p to 83.12p, Spirax, down 160p to 5,860p, SSE, down 42.5p to 1,756p, Intercontinental Hotels Group, down 202p to 8,736p, and Smith & Nephew, down 23.5p to 1,080p.
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