UK stocks end slightly higher after inflation data; focus on Fed, BoE meetings
Britain's FTSE 100 rose on Wednesday as investors weighed the last domestic inflation reading ahead of key central bank meetings in the U.S. and the UK, though Middle East tensions tempered market optimism.
The blue-chip FTSE 100 index ended 0.1% higher, as heavyweight banks recouped lost ground to rise 1.1%.
British inflation slowed in May, as expected by the Bank of England, which is widely predicted to keep interest rates on hold when it meets on Thursday.
'Escalating tensions in the Middle East, and the upward pressure this is putting on oil prices, will only add to the Bank of England's concern about easing rates too quickly,' said Zara Nokes, global market analyst at J.P. Morgan Asset Management.
'The Monetary Policy Committee will face a tougher choice when meeting again in August, given the combination of still-sticky inflation and evidence that the labour market is quite clearly cooling.'
The conflict between Iran and Israel entered its sixth day, with increasing concerns over direct U.S. military involvement after Iranian Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender.
UK stocks fall as Middle East conflict hits risk appetite
Pharmaceutical and biotechnology stocks were under pressure, with GSK and AstraZeneca both down 2.1% and 1.1%, respectively, after Trump said pharma tariffs were coming soon.
The midcap index climbed 0.3%, with shares of ME Group jumping 9% after the vending machines operator confirmed it is evaluating strategic options, including a sale.
Electronics retailer AO World posted record profits in fiscal 2025. Its shares, however, closed 3.6% lower after an initial spike.
Across the Atlantic, the Federal Reserve's policy decision later in the day will be under scrutiny as investors try to gauge expectations for rate cuts.
Other economic data showed that UK house price growth halved in April.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
6 hours ago
- Business Recorder
UK stocks end slightly higher after inflation data; focus on Fed, BoE meetings
Britain's FTSE 100 rose on Wednesday as investors weighed the last domestic inflation reading ahead of key central bank meetings in the U.S. and the UK, though Middle East tensions tempered market optimism. The blue-chip FTSE 100 index ended 0.1% higher, as heavyweight banks recouped lost ground to rise 1.1%. British inflation slowed in May, as expected by the Bank of England, which is widely predicted to keep interest rates on hold when it meets on Thursday. 'Escalating tensions in the Middle East, and the upward pressure this is putting on oil prices, will only add to the Bank of England's concern about easing rates too quickly,' said Zara Nokes, global market analyst at J.P. Morgan Asset Management. 'The Monetary Policy Committee will face a tougher choice when meeting again in August, given the combination of still-sticky inflation and evidence that the labour market is quite clearly cooling.' The conflict between Iran and Israel entered its sixth day, with increasing concerns over direct U.S. military involvement after Iranian Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender. UK stocks fall as Middle East conflict hits risk appetite Pharmaceutical and biotechnology stocks were under pressure, with GSK and AstraZeneca both down 2.1% and 1.1%, respectively, after Trump said pharma tariffs were coming soon. The midcap index climbed 0.3%, with shares of ME Group jumping 9% after the vending machines operator confirmed it is evaluating strategic options, including a sale. Electronics retailer AO World posted record profits in fiscal 2025. Its shares, however, closed 3.6% lower after an initial spike. Across the Atlantic, the Federal Reserve's policy decision later in the day will be under scrutiny as investors try to gauge expectations for rate cuts. Other economic data showed that UK house price growth halved in April.
Business Recorder
6 hours ago
- Business Recorder
European shares fall as Middle East tensions weigh; eyes on Fed decision
European shares declined on Wednesday as investors awaited the Federal Reserve's monetary policy decision, with ongoing tensions in the Middle East adding to market uncertainty. The pan-European STOXX 600 index closed 0.4% down, at a near one-month low. The hostilities between Iran and Israel extended to a sixth day, with fears of a more direct U.S. involvement after President Donald Trump asked for Iran's 'unconditional surrender'. However, Iranian Supreme Leader Ayatollah Ali Khamenei rejected Trump's demand for surrender. Defence stocks were among the biggest gainers, with the sector up 0.6%. Traders also stayed away from risk assets ahead of the Federal Reserve's policy meeting at 1800 GMT, where officials are widely expected to hold interest rates steady. Investors will closely watch policymakers' comments for signals on how the U.S. central bank plans to navigate an uncertain trade environment. 'Rising geopolitical and trade uncertainties mean the Fed's growth and inflation forecasts may lack precision.', said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. European shares slide as Israel-Iran conflict shows no sign of cooling The Fed faces additional challenges from potential inflation risks stemming from the escalating Middle East crisis. As the July 8 tariff-pause deadline approaches, many countries, including the EU are scrambling to strike a deal with Washington. European Commission President Ursula von der Leyen was still aiming to reach a deal by July 9. The only formal deal signed was the finalization of the U.S.-UK agreement announced last month. Other major bourses indexes were largely mixed. London's FTSE 100 closed up 0.1% after data showed that British inflation eased as expected in May. Investors are now eyeing the Bank of England's rate decision on Thursday. 'With services inflation still elevated… the BoE looks nailed on to keep rates unchanged,' said Ruth Gregory, deputy chief UK economist at Capital Economics. Sweden's central bank cut its key interest rate to 2.00% from 2.25% as expected. Still, Stockholm's benchmark index dropped 0.1%. The healthcare sector was the biggest drag on the benchmark index, weighed down by a 1% drop by heavyweight Novo Nordisk. A U.S. judge upheld the U.S. Food and Drug Administration's decision to remove the pharma giant's blockbuster drugs Ozempic and Wegovy from the drug shortage list. Barclays forecasts a year-end 2026 target of 620 for the STOXX 600, citing Germany's stimulus measures and rate cuts as key drivers for this optimistic outlook. French outsourcing firm TP dropped 13.6% to the bottom of STOXX 600 after announcing new medium-term targets. Gerresheimer rose 6.3% after the German medical packaging maker said it was informed KPS Capital Partners was still in talks with Warburg Pincus on a potential joint takeover bid.
Express Tribune
8 hours ago
- Express Tribune
PM Shehbaz terms Iran-Israel conflict threat to regional, global peace
Listen to article Prime Minister Shehbaz Sharif termed the escalating armed conflict between Iran and Israel as 'very alarming,' warning that the situation poses a grave threat to both regional and global peace. Speaking during a cabinet meeting on Wednesday, the premier reiterated Pakistan's 'complete solidarity' with Iran in the face of Israeli aggression and urged the international community to ensure an immediate ceasefire. 'The global community should ensure a ceasefire,' PM Shehbaz stressed, adding, 'We stand firmly with the brotherly people of Iran.' He said he had spoken to Iranian President Masoud Pezeshkian to express condolences and Pakistan's support. He also discussed the regional crisis with Turkish President Recep Tayyip Erdogan. براہِ راست: وزیراعظم محمد شہباز شریف کی کابینہ اجلاس میں ابتدائی گفتگو — Government of Pakistan (@GovtofPakistan) June 18, 2025 On the humanitarian crisis in Gaza, the PM said the suffering of Palestinians was 'heart-wrenching,' noting that over 50,000 had been killed. 'The brutality is being unleashed — but when will the world's conscience wake up?' he asked. Foreign Minister Ishaq Dar is set to attend the OIC foreign ministers' meeting in Turkiye on June 21–22 to discuss the ongoing crises. Turning to domestic matters, PM Shehbaz praised the fiscal 2025 budget, highlighting that the government convinced the IMF not to impose taxes on the agriculture sector. He said the tax rate for incomes between Rs600,000 and Rs1.2 million had been reduced to 1% from 5% last year. He said Rs1 trillion had been allocated for the Public Sector Development Programme (PSDP) to stimulate growth and development. آئی ایم ایف کو بتا دیا تھا کہ زراعت پر کوئی ٹیکس نہیں لگنے دیں گے، آئی ایم ایف نے ہماری اس بات کو مان لیا یہ خوشی کی بات یے۔ تنخواہ دار طبقے کے لئے 6 لاکھ سے 12 لاکھ کی سلیب پر اب 5 فیصد کی بجائے صرف 1 فیصد ٹیکس لاگو ہوگا۔ وفاقی ملازمین کی تنخواہوں میں بھی 10 فیصد اضافہ کرنے جا… — Government of Pakistan (@GovtofPakistan) June 18, 2025 He further lauded the professionalism of the armed forces and public unity during the recent military confrontation with India, calling the outcome a 'great victory.' He noted that budgetary space for defence had been increased to address the needs of security forces fighting terrorism. In closing, PM Shehbaz commended the diplomatic mission led by Bilawal Bhutto Zardari and Sherry Rehman for effectively presenting Pakistan's stance on India's recent 'unilateral and illegal actions' during visits to the US and Europe.
