London Stocks Edge Up as Inflation Data Dents Rate Cut Hopes Sage Shares Surge
London’s stock markets showed modest movements on Wednesday, with the FTSE 100 edging up by 0.07% and the FTSE 250 dipping 0.2%. Investors were reacting to higher-than-expected inflation data, which raised concerns about swift interest rate cuts, despite the positive quarterly results from software company Sage. The technology sector saw strong growth, with Sage’s stock soaring 19% after reporting a 21% rise in operating profit.
The data revealed that October’s inflation had surpassed expectations, driven primarily by higher domestic energy tariffs. As a result, the Bank of England is expected to hold interest rates steady in December, with the expectations of modest rate cuts by next December. This subdued economic outlook tempered broader market optimism, especially for sectors sensitive to domestic issues.
On the individual stock front, real estate-related stocks struggled, with companies like British Land and home construction firms losing ground. Conversely, Severn Trent saw a boost, gaining 3.3% after reporting strong first-half profits and raising its capital expenditure forecast. Investors are now keenly awaiting Nvidia’s upcoming quarterly report for further market direction.
