FTSE 100 closes higher, leading European markets as UK inflation rate cools
European stocks finished broadly higher on Wednesday as investors geared up for central bank decisions.
TL;DR
- European stocks closed mostly higher, with the Stoxx 600 slightly above flat.
- London's FTSE 100 led gains, rising 0.9% after UK inflation fell to 3.2% in November.
- The Bank of England is expected to cut interest rates by 25 basis points to 3.75% due to slow growth and rising unemployment.
- Homebuilder Barratt Redrow and Phoenix Group saw notable gains.
- The British pound weakened against the U.S. dollar and the euro following the inflation data.
- Yields on British government bonds fell across the curve.
- The European Central Bank is expected to maintain its 2% interest rate and may revise growth forecasts upward.
- Other central banks, including Riksbank and Norges Bank, will also announce policy decisions.
- Diageo announced the sale of its stake in East African Breweries for $2.3 billion.
- U.S. stocks traded lower, and Asia-Pacific markets were mixed.