22nd Apr 2026 09:05
(Alliance News) - Stock prices in London opened higher on Wednesday amid choppy trading, as the impact of the Iran war drove UK headline inflation to 3.3% in March.
The FTSE 100 index opened up 9.25 points, 0.1%, at 10,507.34. The FTSE 250 was up 48.39 points, 0.2%, at 23,020.11, and the AIM all-share was up 1.23 points, 0.2%, at 809.66.
The Cboe UK 100 was slightly higher at 1,046.63, the Cboe UK 250 was up 0.1% at 20,104.48, and the Cboe small companies was 0.2% higher at 18,318.46.
In European equities on Wednesday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was 0.2% higher.
Sterling was at USD1.3522 on Wednesday morning, up from USD1.3507 at the London equities close on Tuesday. Against the euro, sterling was slightly higher at EUR1.1506 from EUR1.1498.
The euro was a little higher at USD1.1752 from USD1.1747. Against the yen, the dollar was lower at JPY159.25 versus JPY159.43.
Headline UK inflation rose to 3.3% in the year to March, as the war in Iran hit fuel costs, according to figures published by the Office for National Statistics.
The consumer prices index including owner occupiers' housing costs, or CPIH, rose by 3.4% in the 12 months to March, up from 3.2% in February.
On a month-on-month basis, CPIH rose by 0.6% in March, compared with a rise of 0.3% in the same month last year.
Headline consumer prices index inflation also accelerated. CPI rose by 3.3% year-on-year in March, up from 3.0% in February. The figure was in line with the FXStreet-cited consensus.
Monthly CPI rose by 0.7% in March, compared with a 0.3% rise a year earlier. This came in ahead of the 0.6% consensus expectation.
A separate ONS release showed producer input prices rose by 5.4% in the year to March, sharply up from a revised 0.7% in the year to February. On a monthly basis, producer input prices rose by 4.4%.
AJ Bell analyst Danni Hewson said: "For the Bank of England, the spectre of stagflation will stalk [Monetary Policy Committee] members as they sit around the table next week and try to keep their balance. If they don't hike rates and inflation becomes embedded they will be accused of not acting soon enough, but if the UK does more than flirt with recession in the second half of the year they will face criticism for not doing enough to stimulate an economy struggling to remain steady."
Meanwhile, US President Donald Trump extended the US ceasefire with Iran to allow more time for talks, just hours before hostilities were set to resume, but he vowed to maintain a blockade of Tehran's ports.
Trump indefinitely pushed back the end of the truce, crediting a request from mediator Pakistan and stressing the need to give Iran's "fractured" leadership time to form a proposal.
Brent oil was trading slightly higher at USD98.17 a barrel on Wednesday morning from USD98.03 on Tuesday.
Swissquote analyst Ipek Ozkardeskaya said: "In short, oil price volatility is likely to persist, with prices remaining elevated versus pre-conflict levels, but with limited scope for a sustained upside as higher prices weigh on demand."
In Asia on Wednesday, the Nikkei 225 in Tokyo was up 0.4%. In China, the Shanghai Composite was 0.5% higher, while the Hang Seng Index in Hong Kong lost 1.2%. The S&P/ASX 200 in Sydney was 1.2% lower.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, the S&P 500 0.6% lower, while the Nasdaq Composite retreated 0.6%
The yield on the US 10-year Treasury was quoted at 4.29% on Wednesday, slimmed slightly from 4.30% on Tuesday. The yield on the US 30-year Treasury was quoted at 4.90%, narrowed a little from 4.91%.
Back in London, shares in Bunzl were up 1.6% after it reiterated its full-year guidance, as it reported a slight contraction in its top-line during the first quarter of the year.
The distribution and services company said revenue decreased by 0.4% on a reported basis in the first quarter of 2026, but grew 1.5% at constant exchange rates.
On an underlying basis, the London-based company said its top-line grew 2.0%, supported by volume growth, easier comparatives and tariff-related price increases.
Bunzl noted that adjusted operating profit in the quarter matched its expectations for a more stable performance in 2026.
Reckitt Benckiser was the worst performer on the FTSE 100 as its shares fell 5.5%.
The Uxbridge, London-based consumer goods firm said net revenue in the quarter to the end of March falls 12% to GBP3.25 billion from GBP3.68 billion a year prior.
However, it said net revenue rose 0.6% on a like-for-like basis.
The firm said Core Reckitt delivers net revenue growth of 1.3% on a like-for-like basis to EUR2.60 billion, but fell 1.2% on a reported basis. This was helped by 7.6% growth in its Emerging Markets segment.
The company maintained its like-for-like net revenue guidance for 2026. It expects Core Reckitt net revenue to rise between 4% and 5% on a like-for-like basis.
Chief Executive Officer Kris Licht said: "This will be driven by sequential growth from our market-leading Powerbrands, as the season resets and we continue to launch superior innovations including Mucinex 12hr Cold and Fever, improved performance in Europe and continued strong growth across China, India and non-seasonal North America."
On the FTSE 250 index, shares in Quilter rose 4.8%.
In a trading statement, the London-based wealth manager said assets under management & administration rose 19% to GBP141.9 billion as at March 31, from GBP119.6 billion at March 31, 2025, and were up 2.6% from GBP138.3 billion at December 31.
Record reported net inflows of GBP3.0 billion were largely offset by market movements due to conflict in the Middle East around the quarter-end.
Core net inflows totalled GBP3.06 billion in the first quarter, up 34% on-year from GBP2.28 billion.
"The recovery in markets in recent weeks has led to a meaningful uplift in AuMA from the end March level," said Quilter, noting that is had demonstrated continued strong momentum across its business.
"I'm really pleased with Quilter's continued momentum in the first quarter of 2026, building upon our very strong end to 2025," Quilter Chief Executive Officer Steven Levin said.
On the AIM market, shares in Shoe Zone sank 13% as it warned it now expects to report a loss for the current financial year.
The Leicester, England-based footwear retailer said it has experienced "challenging trading conditions" due to weakened consumer confidence.
"These macroeconomic factors have increased customer caution, leading to lower footfall, less discretionary spend and additional costs such as container prices and transportation costs, with a resultant reduction in revenue and profit," the company said.
As a result, it now expects an adjusted pretax loss for the financial year to October 3 between GBP1.0 million and GBP2.0 million, swung from previous expectations of an adjusted pretax profit of GBP1.0 million. The adjusted pretax profit for financial 2025 was GBP2.4 million.
Gold was higher at USD4,762.70 an ounce early on Wednesday from USD4,744.11 late Tuesday.
Still to come on Wednesday's economic calendar is eurozone consumer confidence data.
By Michael Hennessey, Alliance News reporter
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