12th Aug 2026 17:11
(Alliance News) - Stocks in London ended mixed on Wednesday as investors weighed in-line US inflation data, which saw rate hike bets pared back slightly across the pond.
The FTSE 100 index closed down 11.04 points, 0.1%, at 10,833.15. The FTSE 250 ended up 15.13 points, 0.1%, at 24,814.88, while the AIM All-Share closed up 4.36 points, 0.6%, at 803.93.
The Cboe UK 100 was down 0.3% at 1,075.18, the Cboe UK 250 was 0.1% lower at 21,565.45, but the Cboe Small Companies ended up 0.8% at 19,110.76.
US inflation figures took top billing as the market weighs the chances of an interest rate increase by the Federal Reserve.
The Fed's next rate decision is on September 16. According to the CME FedWatch Tool, there is now a 58% chance it leaves rates unmoved, compared to 52% on Tuesday.
Ahead of the decision, there is the August consumer price index reading on September 11, which could move the dial again, plus a further jobs report the week before. Before both, Fed Chair Kevin Warsh will speak at the Jackson Hole gathering of central bankers.
The figures from the Bureau of Labor Statistics on Wednesday showed US consumer prices rose 3.4% on-year in July, abating from a 3.5% increase in June. The reading was in line with consensus cited by FXStreet.
On a monthly basis, prices rose 0.1% in July, also in line with consensus, after a 0.4% decline in June from May.
Excluding food and energy, annual core consumer price inflation eased to 2.5% in July, a reading that was also in line with expectations, from 2.6% in June. Core consumer prices rose 0.2% on-month in July, after being flat in June from May.
"Today's CPI report is likely comforting enough for the centrists on the Federal Open Market Committee to keep policy rates steady and turns the spotlight onto next month's labour market and inflation data," said Barclays analyst Pooja Sriram.
Thomas Feltmate, senior economist at TD Economics, said the report offers policymakers more reassurance that tariff- and energy-driven inflation pressures are fading.
"One more jobs and CPI report – plus Chair Warsh's Jackson Hole remarks on August 28 – will be key in steering the Fed's next move. But for now, it appears policymakers are likely to remain on the sidelines," he added.
The pound traded at USD1.3507 on Wednesday afternoon, down slightly from USD1.3509 at the equities close on Tuesday. The euro stood lower at USD1.1539 against USD1.1541. Against the yen, the dollar was lower at JPY159.24, compared to JPY159.28.
Against the euro, sterling softened to EUR1.1704 from EUR1.1706.
The yield on the US 10-year Treasury narrowed to 4.67% on Wednesday from 4.69% on Tuesday. The yield on the US 30-year Treasury trimmed to 5.23% from 5.24%.
In European equities on Wednesday, the CAC 40 in Paris closed down 0.5%, while the DAX 40 in Frankfurt ended down 0.2%.
Stocks in New York were mixed. The Dow Jones Industrial Average was down 0.1%, the S&P 500 index was 0.2% higher, while the Nasdaq Composite advanced 0.5%.
Back in London, gold miners Fresnillo and Endeavour Mining rose 2.3% and 2.5%, respectively, as the yellow metal continued its recent progress
Gold traded at USD4,422.11 an ounce on Wednesday, up from USD4,376.20 on Tuesday.
In the red, retailers Burberry, Marks & Spencer, Tesco and Next were down 4.2%, 4.0%, 2.0% and 1.6% respectively.
Tesco was the subject of a downgrade to 'hold' from 'buy' from Shore Capital, while the sector was hit by worries that the ongoing warm weather could keep shoppers away from stores and cause supply issues.
On the FTSE 250, Ocado stole the show, surging 16% higher after positive comments from JPMorgan.
"We continue to view the risk/reward as highly attractive (although volatility is likely to remain) and reiterate our 'overweight' rating," said analyst Marcus Diebel in a research note.
JPMorgan has set a new price target for Ocado of 290p, up from 245p.
Balfour Beatty climbed 7.1%, as it impressed analysts by raising guidance after first-half underlying profit comfortably beat expectations, driven by its UK and US businesses.
"Overall, a strong H1 print for Balfour Beatty, which should start building goodwill for the new management team," said Bank of America analyst Arnaud Lehmann.
Atalaya Mining fell 3.7% as Urion Investment, part of the Trafigura group, fully exited its holding in the owner and operator of Spain's Proyecto Riotinto copper mine via a share placing.
Trafigura sold 16.8 million shares at 915 pence each, around 11% of Atalaya's share capital, raising GBP154 million.
Greggs fell 2.4% as Davy Research downgraded to 'neutral' from 'outperform'.
While he continues to recognise the "quality of the store rollout model, improving free cashflow conversion and modest leverage," Davy analyst Gary Martin believes these strengths are "more than" fully captured in the current valuation.
Brent oil for October delivery traded higher at USD88.88 a barrel on Wednesday afternoon, from USD88.22 late Tuesday.
David Morrison, analyst at Trade Nation, noted the latest moves came as attempts at diplomacy "unravelled further" after US President Donald Trump demanded that Tehran pay direct compensation for the conflict.
"Iran responded saying that the Strait of Hormuz will remain closed until the US meets its own demands, including compensation from the US and an end to its naval blockade of Iranian ports. The crisis deepened further as Iran-aligned Houthi rebels launched fresh strikes on military supply vessels," he added.
The biggest risers on the FTSE 100 were Admiral, up 108.00p at 3,828.00p, 3i, up 71.00p at 2,813.00p, Intercontinental Hotels Group, up 3.95p at 159.75p, Endeavour Mining, up 105.00p at 4,288.00p and Fresnillo, up 68.00p at 3,016.00p.
The biggest fallers on the FTSE 100 were Burberry, down 49.50p at 1,120.50p, Marks & Spencer, down 16.10p at 385.70p, Reckitt Benckiser, down 146.00p at 5,138.00p, IG Group, down 36.00p at 1,354.00p and Relx, down 67.00p at 2,541.00p.
Thursday's global economic calendar has eurozone industrial production data, UK gross domestic product figures plus US PPI numbers.
Thursday's UK corporate calendar has half-year results from miner Antofagasta and bingo operator Rank.
By Jeremy Cutler, Alliance News reporter
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Copyright 2026 Alliance News Ltd. All Rights Reserved.
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