UK Stocks Rebound on Cooler Inflation Data

British stocks closed lower on Wednesday despite US inflation data coming in cooler than expected. The FTSE 100 index lost 0.3%, while Germany's DAX fell 0.7% and France's CAC dropped 0.9%. This is a reversal from earlier gains, which were largely due to the release of US inflation data.

The core personal consumption expenditures price index rose 0.2% month on month in August, compared with 0.1% in July and expectations for 0.3%. The annual rate also came in lower than forecast at 3.0%, matching July's rate but below the 3.3% expected.

The Bank of England warned about rising financial-system risks, citing increased interconnected vulnerabilities due to renewed Middle East conflict, higher energy prices, and AI exposure. Brent oil prices surged above $100 a barrel, with gold also seeing significant gains.