On Wednesday, U.K. stocks advanced while the British pound weakened against other major currencies following data indicating a softer-than-anticipated inflation rate for July.
According to the Office for National Statistics, the U.K. consumer price index rose by 2.2% in July compared to the same period last year, up from June's 2.0% increase. This marks the first acceleration in inflation since last December, although the increase was slightly below the anticipated 2.3%. This unexpected deceleration has fueled expectations among traders for further interest rate cuts by the Bank of England (BoE).
In a separate release, data showed that factory gate inflation unexpectedly eased to 0.8% in July, down from 1.0% in June.
The benchmark FTSE 100 gained 47 points, or 0.6%, closing at 8,282, following a 0.3% uptick on Tuesday.
Shares of Flutter Entertainment surged by 8.7% after the world’s largest online betting firm reported better-than-expected second-quarter results and raised its full-year outlook.
Conversely, infrastructure company Balfour Beatty saw its shares fall by 3.5% despite reporting increased earnings for the first half of the year.
Additionally, insurer Aviva experienced a 1% drop in share price despite posting a better-than-expected 14% rise in first-half operating profit.
