British stocks closed higher on Wednesday as European markets pushed upward, brushing aside a hotter-than-expected UK inflation reading of 3.5%.
The FTSE 100 advanced 0.22%, while Germany’s DAX (^GDAXI) posted a stronger gain of 1.35% and France’s CAC 40 rose 1.06%.
Sterling edged up 0.05% against the dollar, trading at 1.3386, as currency markets absorbed the inflation data without significant disruption.
UK consumer prices climbed to 3.5% in September, up from 3.1% the prior month, surpassing the 3.4% forecast and marking the highest reading since October 2025, according to the Office for National Statistics.
Entain (ENT.L) led all FTSE 100 gainers, rising 4.3%, with Rightmove (RMV.L), Lion Finance, and BP (BP) also posting notable advances during the session.
No single sector dominated trading, but financials held firm throughout the day, with Standard Chartered up 1.38% and Lloyds gaining 1.32%.
Separately, UK house prices fell 0.2% in August, marking a third consecutive monthly decline and leaving annual growth at just 0.9%, the ONS also reported.
The housing and inflation data arrive ahead of the Government’s Budget scheduled for October 28, adding weight to an already closely watched economic moment for Britain.
Britain approved the Jackdaw North Sea gas field, with energy minister Miatta Fahnbulleh saying it would begin supplying gas by the end of this month.
Prime Minister Andy Burnham offered support for the move, stating: “At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.”
The Green Party wasted no time in condemning the approval, labelling the decision “climate vandalism” as debate over Britain’s energy future continues to intensify.
On the geopolitical front, French President Emmanuel Macron made an unscheduled stop in Riyadh, becoming the first Western leader to visit Saudi Arabia since Houthi attacks in the region escalated this month.
Iran’s Foreign Minister Abbas Araghchi said the country was “fully prepared to defend ourselves” while remaining committed to a peaceful resolution, as reported by the Financial Times.
Iranian President Masoud Pezeshkian added that it was “unacceptable to block all avenues and issue threats while simultaneously demanding talks,” signalling continued tensions in diplomatic exchanges.
The UKMTO reported a projectile struck a tanker west of Oman’s Bukha, while also relaying a delayed report of a separate tanker hit off Iraq on Tuesday.
Brent crude futures slipped 0.36% to $108.40 a barrel, while US crude fell 0.98% to $96.86 amid ongoing uncertainty in the region.
Gold futures edged up 0.20% to $4,150.52 an ounce, while spot gold gained 0.16% to $4,132.19, recovering after trading lower earlier in the session.
