UK Stock Market Sees Gains Amid Rising Inflation Concerns
The UK stock market is poised to open higher on September 17, with the FTSE 100 expected to continue its positive trend. The index closed at 10,688.47 on Wednesday, up 0.28% from the previous day's close. The FTSE 250, which includes smaller-cap stocks, gained even more ground, rising by 1.06% to 24,070.20.
The building and construction sector has been a key driver of the market's gains, with housebuilders like Barratt Developments and Redrow posting positive results. The decline in gilt yields has also provided some support for stocks, easing valuation pressure and boosting sentiment.
However, concerns about interest rates remain a major concern, particularly as inflation continues to rise. The consumer price index rose to 3.1% in August from 2.9% in July, with rising fuel prices contributing to the increase. This has made the future uncertain for the Bank of England, which is set to make its next monetary policy decision on September 17.