By Patrick Munnelly, Market Strategist, Tickmill
On Wednesday, the UK’s benchmark index saw more gains, extending its winning streak.
The positive momentum was attributed to cooler-than-expected October inflation data, boosting investor sentiment. Additionally, a rise in commodity prices contributed to the upward movement, particularly benefiting mining and energy stocks as Glencore LON:GLEN and Anglo American LON:AAL both posted gains of over 3% on the session.
The commodity-focused FTSE 100 saw a 0.62% increase.
In October, British inflation exhibited a more significant decline than anticipated. The drop was attributed to a decrease in household energy prices compared to the previous year. Additionally, there was a moderation in the persistently high price growth in the services sector. This development provided some relief to the Bank of England.
Experian shares boosted by half year profits
On the positive side of the ledger, credit data firm Experian LON:EXPN experienced a surge in its shares, rising by 7.5%, making it the top percentage gainer on the FTSE 100 index. The company reported a half-year profit before tax of $763 million, a significant increase from $517 million in the same period the previous year. Experian attributed its success to sustained demand in key markets, including North America and Europe. The company also benefited from increased consumer interest in affordability assessments and investment portfolio analysis amid the current cost-of-living pressures. Experian posted its first interim dividend of 18 cents per share, reflecting a 6% increase. As of the last close, the stock was down 5% year-to-date.
Diageo inventory resolution challenge
On the negative side of the ledger Diageo LON:DGE sat near the foot of the blue chip index today shedding 1.8% as Diageo’s Chief Executive, Debra Crew, stated on Wednesday that predicting the resolution of the inventory issues in Latin America, which prompted a recent profit warning and a 16% drop in the company’s shares, was challenging. Crew mentioned that the company has planned robust retail activities during the holiday period and is implementing additional measures to address the problem. She added that Diageo would provide updates to investors during its first-half results presentation scheduled for January.
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