London Daily

Focus on the big picture.
Wednesday, Sep 23, 2026

UK stocks close down ahead of Fed decision

UK stocks close down ahead of Fed decision

UK's main stock indexes closed lower on Wednesday as investors took little relief from softer-than-expected British inflation as they girded for another interest rate hike from the U.S. Federal Reserve.
The export-oriented FTSE 100 (.FTSE) slipped 0.1%, while the domestically focused FTSE 250 (.FTMC) shed 0.3%.

British inflation fell more than expected in November after it hit a 41-year high in October, raising hopes the price surge has peaked and offering some comfort to the Bank of England as it prepares to raise interest rates on Thursday.

"We did have inflation move a little bit lower, but a lot of that inflationary decrease was due to the energy prices falling recently," said Giles Coghlan, chief market analyst at HYCM.

"This means that when we start seeing oil prices pushing up again, UK CPI will be moving higher and pressures the Bank of England once again. They are already projecting a five-quarter recession. ... The stagflation risks are very real."

The inflation data follows a report on Tuesday showing UK wage growth rose by a stronger-than-expected 6.1% in the August-to-October period.

"Since wage growth came in higher than where the Bank of England would like it to be, that's why the bank is still likely to hike rates by 50 basis points on Thursday," said Dean Turner, chief euro zone and UK economist at UBS Global Wealth Management.

UK housebuilders (.FTNMX402020) fell 1.2% as JPMorgan analysts published a cautious note on the sector, downgrading several stocks, citing a "seasonal lull" for the next few months.

Markets are now focused on the Fed's monetary policy decision due at 1900 GMT, where the central bank is expected to hike rates by 50 basis points.

Among single stocks, TUI AG fell 8.0% after the world's largest holiday company said it planned to repay COVID support through a capital raise next year.

BT Group (BT.L) was a bright spot, up 2.1%, after the telecoms and network provider submitted its new Equinox 2 wholesale fibre offer to the British regulator Ofcom.
Newsletter

Related Articles

0:00
0:00
Close
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×