Wednesday Morning Markets: FTSE Edges Up as UK Inflation Rises on Iran-Driven Energy Costs

London’s blue-chip index nudged higher in early trading on Wednesday, with the FTSE 100 up 0.1% and the FTSE 250 broadly flat, as investors weighed a hotter-than-expected UK inflation reading against continued volatility in the Middle East.

On the continent, the picture was mixed, with Germany’s DAX slipping 0.1%, France’s CAC 40 adding 0.2%, and the Stoxx 50 flat.

The main domestic story is inflation. CPI rose to 2.9% in July, up from 2.6% in June, as the Iran war pushed up energy and fuel costs following a 13% jump in Ofgem’s price cap.

Geopolitically, Donald Trump said no talks with Iran are currently under way or scheduled, instructing his negotiating team to hold off until Tehran is “ready to make a deal.”

He also described the Strait of Hormuz as effectively under US oversight, though Iran, of course, disputed this.

The stand-off continues to underpin firmer oil prices, with Brent crude up 0.7% at $91.63 and WTI up 0.7% at $84.73. Gold rose 0.3% to $4,349 after Tuesday’s close at $4,334, while silver dipped 0.3% to $63.11.

Among individual stocks, Rolls-Royce (+0.77%), Anglo American (+0.73%) and Rio Tinto (+0.73%) lead the FTSE 100 risers.

Smith & Nephew is the biggest faller, down 3.47% after announcing the surprise resignation of CFO John Rogers, effective 30 September. Experian (-1.11%) and 3i Group (-1.11%) also slipped.

In the FTSE 250, Chemring (+5.09%), Breedon Group (+4.87%) and discoverIE (+4.73%), the latter on news of a major new manufacturing facility in Bangalore, top the risers.

Trainline plunged 10.12% after the CMA opened an investigation into its fee disclosures, while Safestore fell 10.06% and Harworth Group dropped 4.65%.

Elsewhere, Oakley Capital, International Public Partnerships and Oxford Nanopore were among companies issuing fresh updates this morning.