British equities saw a resurgence on Wednesday, with the FTSE 100 index gaining 0.26% by the end of the trading day, as investors processed the recent data on consumer price growth from the US. The US annual inflation rate stood at 2.7% in November, up slightly from the previous month’s 2.6%, aligning with market expectations.
Meanwhile, the core inflation rate remained unchanged at 3.3%. "Fed officials may still opt to move forward with a third-round rate cut next week, given the two-month average in terms of employment remains a lackluster 132k and offers near-term coverage for further action. Going forward, the ongoing resilience in the labor market and broader economy, coupled with still-elevated price pressures largely moving sideways for the last several months should be sufficient to prompt a policy pause sooner than later," stated Stifel. In the UK, eyes are turning toward the upcoming release of the latest gross domestic product figures expected on Friday.
Analysts predict a slight increase in the UK GDP, expected to rise by 0.1% month over month for October. On the corporate front, Ashtead Group ($AHT) initiated its $1.5 billion share buyback program just a day after announcing this significant move. The equipment rental firm faced a decline of 1.71% by market close. "The $1.5bn share buyback should provide some support as the company likely enters the listing venue transition process and, for international investors, we believe this mid-cycle wobble in performance potentially represents an attractive entry point," remarked RBC Capital Markets while revising its earnings estimates and price target for the company following a weaker second quarter. $UK100 $AHT.