The FTSE 100 rose 0.45% on Wednesday morning, supported by gains in mining shares as metals prices increased, while investors assessed UK inflation data and developments in the Middle East.
At 07:27 GMT, Germany’s DAX was up 0.26% and France’s CAC 40 gained 0.29%. Sterling was little changed against the US dollar, rising 0.01% to $1.3479.
UK consumer price inflation increased to 3.1% in the 12 months to August, compared with 2.9% in July, according to the Office for National Statistics. The reading matched forecasts, with higher motor fuel costs contributing to the increase.
ING developed markets economist James Smith said the rise in inflation had been anticipated, with weekly fuel price data suggesting that the headline rate could reach 3.4% next month.
Smith noted that food inflation declined to 1.1%, while core consumer price inflation remained at 2.6%.
ING expects inflation to peak at approximately 3.7% early next year and maintains a base case in which the Bank of England leaves interest rates unchanged into 2027.
Smith said any November interest rate increase would be more closely linked to sustained energy prices and their implications for the Bank’s inflation forecasts than to the latest inflation figures alone.
Barratt Redrow Leads FTSE 100 Gains as Mining Shares Advance
Barratt Redrow (LSE:BTRW) rose 6.8% after reporting adjusted profit before tax of £572.8 million, exceeding the consensus estimate of £540.3 million.
The housebuilder also reduced its home completion guidance for the 2027 financial year, citing delays in the planning process.
Mining shares advanced alongside higher metals prices.
Fresnillo (LSE:FRES) gained 2.88%, while Antofagasta (LSE:ANTO) rose 2.8%. Anglo American (LSE:AAL) increased 1.86% and Rio Tinto (LSE:RIO) added 1.16%.
Silver prices climbed 2.23%, copper gained 0.61%, platinum advanced 0.74% and palladium rose 1.35%.
The movements came as markets continued to assess supply risks associated with the conflict in the Middle East.
China Calls for US-Iran Negotiations as Oil Prices Decline
Chinese Foreign Minister Wang Yi called for renewed negotiations between Washington and Tehran on Wednesday during a visit to Beijing by Iranian Foreign Minister Abbas Araghchi.
Wang urged the two countries to resume substantive discussions on outstanding issues and rebuild a negotiating framework based on the consensus reached following the Islamabad memorandum of understanding.
Separately, Iranian state media reported that the country’s Revolutionary Guard had shot down a US MQ-9 drone over Qeshm Island.
In Washington, the US House of Representatives passed a War Powers Resolution concerning Iran by 220 votes to 204 on Tuesday.
Seven Republican lawmakers supported the resolution, compared with four in an earlier vote.
A Congressional Budget Office estimate cited in reporting put the cost of the conflict at $38 billion and indicated that US missile-interceptor stockpiles were being depleted.
In commodity markets, Brent crude declined 0.93% to $107.74 a barrel, while West Texas Intermediate fell 1.47% to $104.27.
Gold futures increased 0.95% to $4,373.70 an ounce, while spot gold rose 0.91% to $4,333.84.
UK Corporate Updates: Moonpig, WH Smith and Babcock
Moonpig (LSE:MOON) maintained its outlook for the 2027 financial year, with revenue growth at its core Moonpig platform offsetting a planned reduction in reported Experiences revenue.
WH Smith (LSE:SMWH) said it expects full-year headline profit before tax of approximately £75 million, at the lower end of its previous guidance range. The retailer cited increased promotional activity and higher costs.
Babcock International (LSE:BAB) reaffirmed its full-year guidance, reporting continued demand across its marine, nuclear and land operations amid increased defence expenditure.
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