16th Sep 2026 12:24
(Alliance News) - Stock prices in London were higher at midday on Wednesday, with miners and housebuilders helping the FTSE 100 advance as investors digested an acceleration in UK inflation and awaited the US Federal Reserve's interest rate decision.
The FTSE 100 index was up 68.65 points, 0.6%, at 10,726.47. The FTSE 250 was up 175.98 points, 0.7%, at 23,994.46, and the AIM all-share was up 5.4 points, 0.7%, at 788.50.
The Cboe UK 100 was up 0.7% at 1,066.96, the Cboe UK 250 was up 0.8% at 20,803.31, and the Cboe small companies was up 0.2% at 18,508.37.
UK consumer price inflation accelerated to 3.1% year-on-year in August from 2.9% in July, in line with market expectations cited by FXStreet, according to the Office for National Statistics.
The increase was driven by higher transport costs, particularly motor fuels, as rising oil prices fed through to consumers.
On a monthly basis, consumer prices rose 0.5% in August, compared with a 0.3% increase in the same month a year earlier.
Core CPI, which excludes energy, food, alcohol and tobacco, rose 2.6% annually in August, unchanged from July and also matching market expectations.
In European equities on Wednesday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.5%.
The pound was quoted at USD1.3463 at midday Wednesday, down from USD1.3485 late Tuesday. Against the euro, sterling fell to EUR1.1672 from EUR1.1681 a day prior.
The euro stood at USD1.1532, down from USD1.1545. Against the yen, the dollar was trading at JPY155.13, up from JPY154.94.
Barratt Redrow was at the top of the FTSE 100, up 9.0%, after reporting better-than-expected full-year profit, despite trimming its completions outlook for financial 2027.
Pretax profit rose 48% to GBP363.5 million in the 52 weeks that ended June 28 from GBP245.3 million on an aggregated basis, as revenue increased 6.6% to GBP6.06 billion from GBP5.68 billion.
Miners were also on the rise thanks to higher gold prices, with Fresnillo up 4.4%, Antofagasta up 3.7% and Endeavour Mining up 3.2%.
Gold was quoted at USD4,345.60 an ounce, higher than USD4,285.70 on Tuesday.
At the other end of the FTSE 100, Marks & Spencer Group fell 4.2%, while JD Sports Fashion lost 2.1%.
On the FTSE 250, Kier Group rose 6.9%, adding to an 11% gain on Tuesday following its annual results. Deutsche Bank Research raised its price target for the infrastructure services company to 330p from 295p, retaining its 'buy' rating.
Pan African Resources gained 5.3% after the gold producer reported a record financial year, as higher production and a stronger gold price drove a surge in earnings.
Pretax profit nearly tripled to USD534.4 million in the 12 months to June 30 from USD196.6 million, while revenue more than doubled to USD1.16 billion from USD540.0 million.
Gold production rose 39% to a record 272,310 ounces from 196,527 ounces, while the average gold price received increased 55% to USD4,235 an ounce from USD2,735.
Among smaller caps, Kendrick Resources rose 10%, Aptitude Software Group gained 9.8% despite saying geopolitical uncertainty had extended sales cycles, and Filtronic climbed 9.3% after receiving a USD8 million follow-on order from an unnamed US customer.
Cirata plunged 33% after reporting a decline in interim earnings, while CT Automotive Group tumbled 26% after saying a key client had contested standard contractual costs.
On the economic front, eurozone industrial production fell slightly in July, but by less than expected, data from Eurostat showed.
Industrial output fell 0.1% month-on-month in July, the same pace as in June, which was revised down from an earlier estimate of no change. Market consensus cited by FXStreet had expected a
0.2% contraction in July.
Production of durable consumer goods rose 0.9% in July, accelerating from a revised 0.4% increase in June.
On an annual basis, eurozone industrial production was flat in July, improving from a revised 0.3% decline in June and beating market expectations for a 0.1% fall.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.4%.
The yield on the US 10-year Treasury was quoted at 5.00%, narrowing from 5.01%. The yield on the US 30-year Treasury was quoted at 5.37%, unchanged from Tuesday.
Attention now turns to the Federal Reserve, which concludes its two-day policy meeting on Wednesday, with markets expecting policymakers to raise interest rates for the first time since 2023 as inflation remains stubbornly above target.
The decision is due at 1800 GMT, followed by a press conference from Fed Chair Kevin Warsh. US consumer price inflation was unchanged at 3.4% year-on-year in August, remaining well above the Fed's 2% target.
Brent oil was quoted at USD107.54 a barrel at midday in London on Wednesday, down from USD108.48 late Tuesday, as the US-Iran war and hostilities in the Gulf dragged on.
Still to come on Wednesday's economic calendar, the US releases retail sales and export and import prices before the Federal Reserve announces its latest interest rate decision.
By Eva Castanedo, Alliance News senior economics reporter
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