FTSE 100 Falls as Inflation Worries Weigh on Europe
The FTSE 100 index fell on Wednesday as investors weighed inflation data in Europe and the US, lower oil prices, and strong domestic economic growth. The index ended down 30.71 points, or 0.3%, at 10,606.00.
In contrast, the FTSE 250 rose 165.18 points, or 0.7%, to 24,539.99, while the AIM all-share firmed 1.24 points, or 0.2%, at 787.40.
Eurozone markets were affected by strong inflation readings, with France's annual inflation rate reaching its highest level since February 2024 and Italy's inflation at 4.2%. Germany's consumer price inflation is expected to have risen to 3.3% in September from 2.9% in August.
Mariana Monteiro of JPMorgan forecasts that euro area headline HICP inflation will increase to 3.9% on-year in September, higher than her original forecast of 3.6%. In the US, data showed the economy grew faster-than-expected in the second quarter, while a closely watched inflation figure cooled more than projected.
The Bureau of Labour Statistics reported that US gross domestic product rose 2.2% on an annualised basis quarter-on-quarter, upwardly revised from an initially reported 1.5% increase. Core personal consumption expenditures price index rose 3.0% on-year in August, matching the growth rate in July.