LONDON, June 17, 2026, 18:03 BST
- FTSE 100 closed up 0.14% at 10,508.61. The FTSE 250 rose 0.16%.
- UK consumer price inflation stayed at 2.8% in May. The Bank of England sets its next interest rate on June 18, with Bank Rate now at 3.75%.
- Miners, banks and homebuilders traded higher. Energy stocks and consumer shares fell back.
FTSE ekes out gain as miners, banks lift blue chips
Britain’s top share indexes ended up on Wednesday, supported by strength in miners and banks. The FTSE 100 put on 0.14% to 10,508.61. The FTSE 250 ticked 0.16% higher. Traders stayed careful with the Bank of England and Fed rate decisions ahead.
Stocks moved after a lighter inflation number. The Consumer Prices Index rose 2.8% in the 12 months to May, steady from April. Economists polled by Reuters had predicted 3.0%.
Traders headed into Thursday’s BoE call less worried about a quick squeeze. Bank Rate is at 3.75%. The rate decision is set for June 18. The Fed was set to announce its decision later Wednesday, with the market focused on Kevin Warsh’s first meeting as chair.
Gains were uneven. Precious-metal miners jumped 3.3%, marking a fifth day of gains. Banks provided the biggest push to the FTSE 100. Homebuilders added 3.2%. Barclays rose 3.4% after BofA Global Research raised its price target. BP dropped 1.6% and Shell slipped 1%, sending the energy index down 1.2%.
“For the investor it is a dilemma; good news for the economy’s resilience is bad news as it justifies a rate hike,” said Nick Saunders, chief executive of Webull UK. That about sums up the session: the index held up, but traders didn’t see a full risk-on move. Reuters
ONS said on Wednesday that transport pushed UK inflation higher in May, as food and non-alcoholic drinks eased some of that move. Core CPI, which leaves out food, energy, alcohol and tobacco, ticked up to 2.6% from 2.5%. Services inflation moved up to 3.7%, compared to 3.2% before.
“Today’s data strengthens the case for a continued cautious approach from the Bank of England,” KPMG chief economist Yael Selfin said. Pantheon Macroeconomics chief economist Rob Wood sounded less comfortable. “A chunk of inflation is locked in the system now,” Wood said. He said he does not expect the BoE to raise rates this year. Reuters
London tracked a stronger European market. The STOXX 600 rose 0.5% for its fifth up day, helped by gains in banks and tech. Autos fell 3.3% after BMW slashed its outlook. Barclays lifted its year-end STOXX 600 target to 670 from 620, saying lower oil and a better risk-reward in Europe supported the move.
But there’s still a weak spot in the trade. Oil prices climbed more than 1% on Wednesday after President Donald Trump said the ceasefire deal with Iran isn’t set, which kept investors on edge for another possible energy shock if talks break down. “There’s still a bit of uncertainty in terms of the U.S. situation,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. Reuters
Policy language is the next test. James Demmert, chief investment officer at Main Street Research, said investors “will have to get used to the new Fed Chair’s communication style.” The BoE makes its decision less than a day after the inflation data. A hold wouldn’t settle things; the focus just shifts to whether oil, services prices and wages keep inflation over target. Reuters
