The FTSE 100 rose 0.3% on Wednesday, recovering part of the previous session’s 0.4% decline, as softer oil prices helped support risk appetite despite a renewed pickup in UK inflation. Consumer prices increased 3.1% year-on-year in August, up from 2.9% in July and in line with market expectations, though slightly above the Bank of England’s 2.8% forecast. The acceleration was driven largely by higher motor-fuel costs, linked to the ongoing conflict in Iran, and a rise in airfares. Investors are now turning their attention to the Federal Reserve’s policy decision later today and the Bank of England’s meeting on Thursday.
Among individual stocks, Barratt Redrow jumped more than 11% after delivering annual results that beat expectations, while Persimmon advanced 6%. Banks including Standard Chartered, NatWest, Lloyds Banking Group and HSBC also gained after JPMorgan projected stronger third-quarter trading and investment-banking revenue. In contrast, energy heavyweights Shell and BP each declined by more than 2%.