17.12.202515:04:02UTC+00UK Stocks See Strongest Gain in 8 Months

On Wednesday, London's FTSE 100 index experienced a significant rise of 1.7%, surpassing 9,800, marking its most robust daily performance since April 14. This uptick was fueled by lower-than-anticipated inflation data, which heightened expectations for a rate cut and concurrently weakened the pound. The Bank of England (BoE) is poised to announce its final decision for the year on Thursday, with markets largely anticipating a 25 basis point reduction in rates.

Leading the charge among the risers was Phoenix Group, surging 4.3% following an upgrade to a 'buy' rating by UBS. Close behind was HSBC, which enjoyed a 3.3% increase after being upgraded to 'outperform' by KBW. Other solid performers included companies in sectors such as mining, housebuilding, utilities, banking, and oil. For instance, Glencore saw a boost of 2.4%, helped by a 'buy' endorsement from Berenberg, while housebuilders like Barratt, Redrow, and Persimmon made gains amid speculation of an impending rate cut.

Conversely, DCC experienced a decline of 3.2%, and Bunzl decreased by 2.1%, with the latter affected by its forecast of a slight year-on-year dip in the 2026 operating margin.