British stocks registered a gain on Wednesday in a relatively calm economic news environment, with investors keenly awaiting the US Federal Reserve's cornerstone inflation measurement for the world's largest economy. The FTSE 100 index experienced a modest increase of 0.20% by market close. Attention is squarely focused on the US personal consumption expenditures, or PCE, price index for October, set to be released Wednesday afternoon local time.
Both the monthly headline and core figures are largely anticipated to hold steady at 0.2% and 0.3%, respectively. "The 0.3% month-on-month reading may still be a little too high for the Fed's liking, although such a number is fully discounted today," professionals at ING opined. "This suggests that the market is likely to maintain its pricing of 15 basis points worth of Fed cuts in December, while also keeping US rate differentials compared to the Rest of the World at fairly significant levels." Domestically, the Nationwide house price index for November is set for release this Friday.
Analysts project a slight increase of 0.1% for the monthly figure, paired with an estimated annual growth of 2.4%. The Bank of England is also scheduled to unveil its data regarding money and credit on the same day. In corporate developments, the European Commission has given the green light for a fully liquid single-vial form of GSK's meningococcal vaccine Menveo.
This vaccine is now authorized for active immunization in children aged two and above, along with adolescents and adults. The British pharmaceutical company recorded a gain of 0.45% during the day. On another note, easyJet reported a rise in profit and revenue for the fiscal year ending September 30, 2024.
The low-cost airline from the UK also announced an increase in its dividend and anticipates a rise in capacity for fiscal 2025. Despite positive news, shares of easyJet fell by 0.41% at market close. Meanwhile, HSBC Holdings experienced a slight decrease of 0.10% in shares after Moody's affirmed its A3 senior unsecured debt ratings and stable outlook.
This announcement reflects the rating agency's unchanged expectation for a moderate loss-given-failure and a low likelihood of government support..