Wednesday Morning Markets: FTSE Dips as UK Inflation Hits 3.5% and Brent Climbs

London shares edged lower in early trading on Wednesday, with the FTSE 100 and FTSE 250 both down 0.1%, as Brent crude rose and UK inflation climbed.

Elsewhere in Europe, the DAX fell 0.1%, while the CAC 40 gained 0.2% and the Stoxx 50 added 0.1%. Sterling was flat at $1.3378. Spot gold slipped 0.3% to $4,115.

Brent is up 1.2% at $110.08 a barrel so far today, and WTI rose 1.1% to $98.87. US Secretary of State Marco Rubio said a peace deal with Iran is extremely difficult, while Iran’s foreign minister Abbas Araghchi said the Strait of Hormuz stays closed until Washington accepts Tehran’s conditions. BP was up 2.24% and Shell has gained 0.8%.

The Office for National Statistics (ONS) said consumer price inflation rose to 3.5% in September from 3.1% in August. That was slightly above analysts’ expectations. ONS chief economist Grant Fitzner said inflation “climbed notably”.

The Budget is due next Wednesday, 28 October.

Index	Stock	Move so far today
FTSE 100 risers	Ithaca Energy 306.60p; BP 619.00p; Scottish Mortgage 1,563.50p	+4.57%; +2.24%; +1.66%
FTSE 100 fallers	3i Group 2,313.00p; Aberdeen 227.30p; Fresnillo 2,626.50p	-4.34%; -3.49%; -2.31%
FTSE 250 risers	Dr Martens; Quilter 188.20p; Entain 449.10p	+5.21%; +4.33%; +3.17%
FTSE 250 fallers	Halfords 261.50p; 4imprint 4,397.00p; Bytes Technology 451.20p	-5.76%; -4.64%; -3.51%

Aberdeen traded lower after third-quarter figures showed a £0.3bn net outflow, though chief executive Jason Windsor said the group was “confident in delivering our FY 2026 Group targets”.

Fresnillo was lower after reporting third-quarter silver output of 10.3 million ounces, down 11.6% year on year, with guidance maintained.

Halfords fell after first-half group like-for-like sales rose 7.1% and it gave full-year underlying profit guidance of £55m to £65m. The company said second-half profit would be lower than the first half owing to investment in marketing and technology.