Investing.com -- British stocks once again reversed gains on Wednesday despite U.S. inflation data coming in cooler than expected, outweighing concerns over rising oil prices and a Bank of England warning on financial-system risks.
The FTSE 100 closed 0.3% lower. Germany's DAX fell 0.7% and France's CAC 40 dropped 0.9%, both reversing earlier gains. Sterling has gained, rising 0.3% to $1.3259.
U.S. data released on Wednesday showed the core personal consumption expenditures price index, which strips out food and fuel, rose 0.2% month on month in August.
That compared with 0.1% in July and expectations for 0.3%. In the twelve months to August, core PCE stood at 3.0%, matching July's rate but below the 3.3% forecast.
Including all items, the gauge rose 0.3% on the month and 3.4% on the year, against expectations of 3.7% annually. Federal Reserve policymakers closely watch these gauges when calibrating interest rates.
The Bank of England's Financial Policy Committee said risks from interconnected vulnerabilities had increased, citing renewed Middle East conflict, higher energy prices, rising bond yields and AI exposure.
It said Brent was above $100 a barrel and gilt and U.S. Treasury yields were at their highest since 2008.
UK GDP grew 0.5% in April-June, against a 0.4% forecast and 0.6% in the first quarter, the Office for National Statistics said. Net trade was the main boost, with export volumes up 2.8%. Services output rose 0.6%, while production fell 0.1%.
German annual inflation rose to 3.3% in September from 2.9%, above a 3.2% consensus, the Federal Statistical Office said. France's preliminary rate hit 3% from 2.4%, above forecasts of 2.8%, INSEE said.
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Prime Minister Andy Burnham told BBC Radio 4's Today programme the government could consider rejoining the EU as part of a longer-term review, saying Brexit had caused "more harm than good." Conservative deputy leader Alex Burghart said Labour could not blame current economic problems on the Brexit vote.
Revolutionary Guards spokesperson Hossein Mohebbi said "military conflict" in the Strait of Hormuz occurs daily and the U.S. "does not respond," Fars news agency reported.
Iran received a U.S. response, relayed by Qatari mediators, to its offer to reopen Hormuz, and top leaders are reviewing it, government spokeswoman Fatemeh Mohajerani said, citing IRNA. No details were given.
U.S. President Donald Trump said the war on Iran would end "very soon" without giving details, and repeated that Tehran will not have a nuclear weapon.
Overnight, Trump denied he would ease sanctions on Iran, reports said, pushing oil higher. Iranian President Masoud Pezeshkian said Washington and Israel were seeking to sow internal divisions after failing militarily, IRNA reported.
Brent crude futures rose 1.70% to $97.78 a barrel, and U.S. West Texas Intermediate rose 1.38% to $90.59, both swinging from earlier losses. Gold futures rose 1.54% to $4,244.35 an ounce, and spot gold gained 0.71% to $4,211.36.
UK round up
Saga's underlying pretax profit nearly doubled in H1 2026, prompting the over-50s specialist to raise its profit and cash-flow outlook.
Greggs raises its 2026 outlook after stronger summer sales while proposing four manufacturing-site closures and around 740 job cuts.
Pinewood Technologies reports a wider H1 loss as North American investment and acquisition costs offset higher revenue and EBITDA, while maintaining its FY26 outlook.
Original Article
FTSE 100 today: Stocks close lower after cooler-than-expected U.S. inflation data
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