LONDON: London’s FTSE 100 ended higher on Wednesday, helped by gains in industrial and defensive stocks, while data showed inflation jumped past the central bank’s target as Britain emerges from a third national lockdown.
After touching its highest level since February 2020 at 7,217.5, the blue-chip index end 0.2% higher at 7,184.95. Industrials, travel and pharmaceuticals provided the biggest boost to the index.
The domestically focused mid-cap FTSE 250 index fell 0.1%. British inflation unexpectedly jumped above the Bank of England’s 2% target in May when it hit 2.1%, driven in large part by the comparison with prices in May 2020 when the country was in its first tight coronavirus lockdown.
The FTSE 100 and the FTSE 250 have oscillated in a narrow range since mid-April on worries that a Covid-19 resurgence might crimp the recovery, while rapid economic growth could lead to higher inflation and prompt central banks to pare their support.
Energy stocks were the biggest drag on the index, with oil majors BP and Royal Dutch Shell falling 1.1% and 0.7% respectively.
Gateley fell 2.8% after the legal and professional services group reported a cyber security breach from a known external source.
Online furniture retailer Made.com fell 1.5% in its market debut.
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