Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London open: Stocks rally after UK inflation data
(Sharecast News) - London stocks rallied in early trade on Wednesday as investors welcomed a bigger-than-expected drop in UK inflation. At 0850 GMT, the FTSE 100 was up 1.1% at 7,521.40.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Investors have a spring in their step, as hopes rise that the fight against inflation is gaining ground. The wave of euphoria which washed over Wall Street, after softer than expected data on prices rises, is still lapping over indices, and the FTSE 100 looks set for positive early trade after UK inflation also dipped by more than expected in October, taking a big step downwards.
"Some better-than-expected data on the Chinese economy should also provide support for commodity focused stocks."
Figures released earlier by the Office for National Statistics showed that inflation fell to a two-year low in October as energy prices eased after the energy price cap was cut.
The annual rate of consumer price inflation declined to 4.6% from 6.7% in September, beating economists' expectations for a fall to 4.8%.
The largest downward contribution to the monthly change in inflation came from housing and household services, the ONS said, where the annual rate for CPI was the lowest since records began in January 1950.
The figures showed that gas costs fell by 31%, versus a 1.7% increase in September. Meanwhile, electricity costs were down 15.6% in October compared with a 6.7% rise the month before.
ONS chief economist Grant Fitzner said: "Inflation fell substantially on the month as last year's steep rise in energy costs has been followed by a small reduction in the energy price cap this year.
"Food prices were little changed on the month, after rising this time last year, while hotel prices fell, both helping to push inflation to its lowest rate for two years."
On a monthly basis, CPI was unchanged in October, compared with a rise of 2.0% last year.
In equity markets, Experian surged as it delivered a solid set of first-half results with all regions contributing positively to growth, and reiterated its guidance for the full year.
SSE was also in the black as its half-year earnings came in above expectations.
Housebuilders were among the best performers as the drop in inflation boosted hopes of interest rate cuts. Taylor Wimpey, Barratt Developments, Persimmon, Crest Nicholson and Berkeley all rose sharply.
Market Movers
FTSE 100 (UKX) 7,521.40 1.09% FTSE 250 (MCX) 18,721.07 1.00% techMARK (TASX) 4,110.56 0.60%
FTSE 100 - Risers
Experian (EXPN) 2,821.00p 5.22% St James's Place (STJ) 681.80p 3.21% SSE (SSE) 1,764.00p 3.07% Endeavour Mining (EDV) 1,706.00p 2.71% Anglo American (AAL) 2,201.50p 2.71% Fresnillo (FRES) 549.40p 2.69% International Consolidated Airlines Group SA (CDI) (IAG) 157.90p 2.60% Hargreaves Lansdown (HL.) 762.00p 2.58% Spirax-Sarco Engineering (SPX) 9,024.00p 2.22% Taylor Wimpey (TW.) 126.85p 2.17%
FTSE 100 - Fallers
Ocado Group (OCDO) 559.40p -0.92% CRH (CDI) (CRH) 4,874.00p -0.77% Centrica (CNA) 149.30p -0.33% Vodafone Group (VOD) 72.94p -0.23% BP (BP.) 480.15p -0.17% Pearson (PSON) 963.00p -0.15% BAE Systems (BA.) 1,071.50p -0.14% Sage Group (SGE) 982.40p -0.02% Dechra Pharmaceuticals (DPH) 3,786.00p 0.00% DCC (CDI) (DCC) 5,252.00p 0.08%
FTSE 250 - Risers
Crest Nicholson Holdings (CRST) 198.80p 6.08% Ceres Power Holdings (CWR) 218.20p 5.92% Intermediate Capital Group (ICP) 1,519.00p 4.43% Aston Martin Lagonda Global Holdings (AML) 224.40p 4.28% CLS Holdings (CLI) 104.00p 4.00% British Land Company (BLND) 363.90p 3.82% Oxford Instruments (OXIG) 2,130.00p 3.65% Digital 9 Infrastructure NPV (DGI9) 50.40p 3.28% Genuit Group (GEN) 301.50p 3.25% Future (FUTR) 965.50p 3.15%
FTSE 250 - Fallers
Barr (A.G.) (BAG) 490.00p -2.78% Indivior (INDV) 1,320.00p -2.00% Pacific Horizon Inv Trust (PHI) 529.00p -1.86% 4Imprint Group (FOUR) 4,375.00p -1.69% ICG Enterprise Trust (ICGT) 1,210.00p -1.14% Impax Environmental Markets (IEM) 363.00p -1.09% Alliance Trust (ATST) 1,048.00p -0.95% BH Macro Ltd. GBP Shares (BHMG) 363.50p -0.82% AVI Global Trust (AGT) 204.00p -0.73% Schroder Asia Pacific Fund (SDP) 483.00p -0.72%
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.