British stocks exhibited minimal movement but remained in the negative zone on Thursday, with the FTSE 100 index showing a decline of 0.07%. This downturn arrives amidst a new inflation report from the United States, the world's largest economy. Data released by the US Bureau of Labor Statistics indicated that consumer prices increased by 2.4% year over year in September, slightly lower than the 2.5% recorded in August and above the consensus estimate of 2.3%.
In addition, the core inflation rate in the US stood at 3.3%, compared to the previous month's figures and exceeding the consensus estimate of 3.2%. The release of the inflation data closely followed the minutes from the US Federal Reserve's monetary policy meeting held in September. During this meeting, the Federal Open Market Committee acknowledged the robust growth of the US economy as a factor influencing its decision to reduce the target range of the federal funds rate to between 4.75% and 5%. Looking toward the future, US policymakers underscored that subsequent rate decisions will hinge on thorough evaluations of incoming economic data, the evolving landscape, and associated risks.
They also conveyed readiness to modify monetary policy to meet the dual goal of steering inflation back to 2% while also upholding the labor market's health. Meanwhile, in the UK, housing prices demonstrated continued signs of recovery in September, according to the Royal Institution of Chartered Surveyors' latest residential market survey.
The results signaled a significant 16% increase in UK home prices, marking a notable improvement from the stagnant data observed in the previous month. "Crucial for the outlook, a further easing of monetary policy is expected in the coming months, setting the stage for a more favorable market environment," remarked Tarrant Parsons, head of market analytics at RICS.
"In alignment with this perspective, forward-looking sentiment data indicates a potential increase in sales volumes, both in the immediate term and over the next year." On the corporate side of things, Segro ($SGRO) persisted with its all-share takeover proposal for property firm Tritax EuroBox (BOXE.L, $EBOX) at a valuation of 0.684 pound sterling, despite a competing cash offer of 0.690 pounds from Brookfield's real estate private funds.
The directors of Tritax withdrew their endorsement of Segro's bid and expressed unanimous support for Brookfield's offer. At the market close, Segro's stock rose by 0.31%, while Tritax ended the day up by 3.04%..