LONDON MARKET OPEN: Stocks open mixed with few UK inflation surprises

Wed, 18th Jun 2025 08:59

(Alliance News) - Stock prices in London opened mostly higher on Wednesday, ahead of the US rate call and jobless data, with the Federal Reserve expected to make no changes.

Meanwhile in the UK, consumer prices rose 0.2% on a monthly basis in May, slowing from 1.2% in April and in line with FXStreet-cited consensus. Annually, consumer price inflation came in at 3.4% against 3.5% on-year growth for April, also in line with consensus.

The core consumer price index posted 3.5% on an annual basis, against the prior month's 3.8% growth and slightly below consensus which pencilled in 3.6% growth.

The FTSE 100 index opened up 9.24 points, 0.1%, at 8,843.27. The FTSE 250 was up 10.79 points, 0.1%, at 21,247.84, and the AIM All-Share was down 1.22 points, 0.2%, at 762.92.

The Cboe UK 100 was up 0.1% at 881.25, the Cboe UK 250 was up 0.1% at 18,784.22, and the Cboe Small Companies was up marginally at 16,990.38.

The opening of HS2 will be delayed beyond the planned date of 2033, the UK government will confirm.

Transport Secretary Heidi Alexander is expected to tell Parliament on Wednesday afternoon there is "no reasonable way to deliver" the high-speed railway on schedule and within budget.

The project has already suffered repeated delays and soaring costs despite being scaled back.

Alexander will tell the Commons she is drawing a "line in the sand" over the beleaguered rail project, as the government attempts to reset how the UK delivers major infrastructure.

Meanwhile for stocks, gambling company Entain led the FTSE 100 at the open, up 2.3%. Aerospace manufacturing firm Melrose Industries followed, up 2.1%. Howden Joinery, which supplies kitchen and joinery products to trade customers, led the laggers with a 3.1% decline.

On the FTSE 250, Raspberry Pi was among the laggers, down 0.9%.

Its Chief Executive Officer Eben Upton has sold 400,000 shares at an average of 455 pence, while Chief Financial Officer Richard Boult sold 100,000 shares at the same average price.

On AIM, Tiger Royalties surged 34%.

The technology and mining-focused investment vehicle announced a partnership with Tao Alpha, down 4.8% in London, to help "manage and accelerate the revenue potential of the [Tiger Alpha Bittensor Subnet]". Tao will provide subset infrastructure in exchange for 20% of the revenue.

Tao shares had increased more than fourfold on Tuesday in London, after it reported that it had secured a GBP5 million loan, and adopted a cryptocurrency-led treasury policy in Singapore.

Electric Guitar fell 19%.

The company, currently a cash shell, raised GBP775,000 through placing 968.8 million shares at 0.08 pence each. Net proceeds will total approximately GBP730,000.

Electric Guitar intends to use the money both for general working capital and to fund the "anticipated costs" of a reverse takeover. It has "been in active discussions with potential acquisition targets".

In UK news, the opening of HS2 will be delayed beyond the planned date of 2033, the UK government will confirm.

Transport Secretary Heidi Alexander is expected to tell Parliament on Wednesday afternoon there is "no reasonable way to deliver" the high-speed railway on schedule and within budget.

The project has already suffered repeated delays and soaring costs despite being scaled back. Alexander will tell the Commons she is drawing a "line in the sand" over the beleaguered rail project, as the government attempts to reset how the UK delivers major infrastructure.

"HS2 has made Britain a laughing stock in terms of its ability to deliver big infrastructure projects, and it has to end," a government source told the PA news agency.

In European equities on Wednesday, the CAC 40 in Paris opened up 0.1%, while the DAX 40 in Frankfurt was down 0.1%.

The pound was quoted lower at USD1.3466 early on Wednesday in London, compared to USD1.3502 at the equities close on Tuesday. The euro stood at USD1.1518, slightly lower against USD1.1522. Against the yen, the dollar was trading lower at JPY144.96 compared to JPY145.07.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.9%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was down 1.2%. The S&P/ASX 200 in Sydney closed down 0.1%.

In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.7%, the S&P 500 down 0.8% and the Nasdaq Composite down 0.9%.

The yield on the US 10-year Treasury was quoted at 4.41%, narrowing from 4.42%. The yield on the US 30-year Treasury was quoted at 4.91%, narrowing from 4.93%.

"The [US] Fed is not expected to change rates at [its Wednesday] meeting," Swissquote's Ipek Ozkardeskaya said. "The base case remains two rate cuts this year, with the first likely not before September, according to Fed funds futures pricing.

"The probability of a September cut stands around 63% ahead of today's decision."

She continued: "While the economic projections and dot plot could shift market expectations, rising geopolitical and trade uncertainties mean the Fed's growth and inflation forecasts may lack precision. Any indication from the dot plot should be taken with a grain of salt.

"It's likely the Fed will reiterate that policy is in a good place and that further decisions will be data-dependent."

Brent oil was quoted higher at USD76.08 a barrel early in London on Wednesday from USD75.45 late on Tuesday.

Gold was quoted higher at USD3,382.96 an ounce against USD3,381.51.

Still to come on Wednesday's economic calendar, as well as the rate call, US jobless figures are due in the afternoon. This is due to US markets closing tomorrow for Juneteenth National Independence Day.

By Emma Curzon, Alliance News reporter

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