21st Oct 2026 12:07
(Alliance News) - European blue-chips were largely higher on Wednesday morning, though the FTSE 100 underperformed as housebuilders and consumer-facing firms fell, while North Sea operators moved higher.
The FTSE 100 index edged up 5.71 points, 0.1%, at 10,738.71. The FTSE 250 inched up 21.90 points, 0.1%, at 24,386.66, and the AIM all-share rose just 0.09 of a point to 763.02.
The Cboe UK 100 traded up 0.1% at 1,066.00, the Cboe UK 250 was 0.1% higher at 21,490.42, while the Cboe small companies was 1.1% higher at 19,150.98, supported by a sharp rise in Mobico shares.
In European equity markets on Wednesday, the CAC 40 in Paris was up 0.6%, but the DAX 40 in Frankfurt shot up 0.7%.
"The FTSE 100 was a laggard on Wednesday morning despite a recovery in Asian markets and tentative gains elsewhere in Europe," AJ Bell analyst Russ Mould commented.
"The fortunes of the index were not helped by a higher-than-anticipated inflation number which could up the pressure on the Bank of England to increase rates at its next meeting. Retailers and housebuilders were among those to come under pressure."
Retailer JD Sports fell 0.8%, housebuilder Barratt Redrow was down 0.7%, while B&Q owner Kingfisher declined 2.1%.
But the inflation data supported the pound. Sterling rose to USD1.3391 midday Wednesday, from USD1.3376, at the time of the London equities close on Tuesday. Against the euro, sterling firmed to EUR1.1924 from EUR1.1901.
The euro faded to USD1.1226 from USD1.1234. Against the yen, the dollar was trading at JPY158.08, down from JPY158.13.
The Office for National Statistics said the annual consumer price inflation rate accelerated to 3.5% in September, from 3.1% in August. The September reading topped the FXStreet-cited consensus of 3.4%.
It was the quickest pace of yearly consumer price growth since October 2025.
On a monthly basis, consumer prices rose 0.4% in September, having climbed 0.5% in August from July.
September's reading was above the FXStreet-cited forecast of a 0.3% rise.
Separate figures on Wednesday showed public sector borrowing rose to GBP24.52 billion in September, from GBP17.25 billion in August. August's figure was downwardly revised from around GBP18.3 billion.
Borrowing for September was above the prior year's GBP22.76 billion.
"Spending, including higher debt interest costs, increased more than government income, partly reflecting the impacts of inflation," the ONS said.
Borrowing was GBP97.8 billion in the financial year up to September, down 4.3% on-year, but GBP6.0 billion above an Office for Budget Responsibility forecast. The UK financial year runs from April 1 to March 31.
Analysts at Lloyds Bank commented: "For gilt market participants, the more relevant measure is the central government net cash requirement, which determines how much funding ultimately needs to be raised from markets. The cumulative CGNCR reached GBP90.0 billion by September, GBP1.5 billion above the same period last year. Today's figures continue to point to upside risks around the government's financing requirement and support expectations that gilt issuance estimates may need to be revised higher when the budget and updated OBR forecasts are published next week, consistent with our budget projections."
In New York, the Dow Jones Industrial Average is called to open flat, the S&P 500 up 0.2% and the Nasdaq Composite 0.5% higher.
The yield on the US 10-year Treasury was quoted at 5.12%, widening from 5.11% at the time of the London equities close on Tuesday. The yield on the US 30-year Treasury was steady at 5.43%.
The yield on France's benchmark 10-year government bond surpassed 5% on Wednesday, its highest level since 2002, as investors demanded a higher return for holding the country's debt amid a budget standoff and violent street protests.
The spread between the 10-year yield and the German 10-year bond, considered the European benchmark of creditworthiness, also surged to nearly 160 basis points.
Analysts at ING commented: "And on Friday there is a looming Moody’s rating review of France, which could keep sentiment on OATs soft."
OATs refer to obligations assimilables du Tresor, French government bonds.
Brent was quoted at USD110.99 a barrel early Wednesday afternoon, jumping from USD106.65 at the time of the London equities close on Tuesday. Gold was quoted at USD4,128.39 an ounce, down from USD4,131.02.
Supported by a higher Brent price, Ithaca Energy added 2.7% and Shell rose 0.6%. Also lifting the oil producers, the UK government has approved plans to begin drilling in the Jackdaw gas field in the North Sea.
The decision by the North Sea Transition Authority ends months of speculation about the future of the project, which owner Adura said could deliver around 6% of UK North Sea gas production. Adura is co-owned by Shell and Equinor.
A decision on Rosebank, the largest untapped oil field in the North Sea, is being made separately. Adura owns 80% of Rosebank, with Ithaca Energy holding the remainder.
Analysts at Shore Capital Markets commented: "In our view, Jackdaw’s approval establishes a precedent for the approval of further projects, with Rosebank the next in line. UK producers of all sizes can now look at development opportunities within their existing portfolios with greater confidence that robust development projects can navigate the rigorous and politicised regulatory process."
In a positive read across, EnQuest added 1.6%, Serica climbed 2.0% and Kistos rose 2.3%.
Also on the up, recruiters Michael Page and Hays jumped 9.1% and 7.5%, the best FTSE 250 performers.
Staffing firm Randstad surged 19% in Amsterdam on well-received earnings, lifting the London listings.
Mobico jumped 33%. It confirmed it had received a possible cash takeover proposal worth 46 pence per share from Autobuses de Leon, with its independent directors indicating they would be minded to recommend an offer on those terms.
The National Express owner said the non-binding proposal followed an initial approach and subsequent negotiations with Autobuses de Leon, which is jointly owned by CMC Group and a fund managed by Madrid-based Asterion Industrial Partners.
CMC Group is Mobico's largest shareholder, holding a 26% stake. At 46p per share, the proposal values Mobico's equity at GBP282.5 million. Mobico has a market capitalisation of GBP242.6 million.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
JD SportsBarratt RedrowKingfisherIthaca EnergyShellEnquestSerica EnergyKistos HoldingsPageGroupHaysMobico Group