Equities in London remained relatively stable amid the latest US inflation data, as investors assessed the potential impact on monetary policy in the world's largest economy. The blue-chip FTSE 100 index concluded the trading session slightly up, closing 0.06% higher on Wednesday. US annual inflation saw a rise to 2.6% in October, compared to 2.4% in September, while the core inflation rate held steady at 3.3%.
These figures aligned perfectly with market expectations. "This release supports our call for a 25 bps cut from the FOMC in December. Market odds of a cut had moved upwards on the result, reaching approximately 65% at the time of writing, an increase from below 50% the previous day," noted Macquarie in their analysis. In the corporate sector, Smiths Group ($SMIN) experienced a notable surge, trading 10.45% higher at the close after it revised its organic revenue growth forecast for fiscal 2025 to between 5% and 7%, up from an earlier estimate of 4% to 6%.
The British engineering company reported its organic revenue for the first fiscal quarter ending on November 1 grew by 15.8% year over year. "Overall, we view Smiths' strategy for accelerated growth as promising (targeting 4-6% per annum, contrasting with a CAGR of +1% during 2010-2019), but we would appreciate seeing greater evidence on margin progression first," stated RBC Capital Markets. Meanwhile, Experian ($EXPN) reported a decline in its attributable profit over the six months ending September 30, despite an increase in revenue indicative of improved underlying momentum and growth across all regions.
This data and technology company closed 2.51% lower on Wednesday..