FTSE 100 Holds Steady as Inflation Cools and UK Pushes Ahead With Market Transparency Reforms

London’s FTSE 100 paused after a four-day decline on Wednesday, supported by defensive sectors as fresh data showed UK inflation easing and policymakers signaled a possible rate cut next month.

The blue chip index traded nearly unchanged at midday, with gains in healthcare and consumer staples helping offset pressure from aerospace and defence stocks. UK consumer inflation slowed to 3.6 percent in October, the first drop since May, reinforcing expectations of a December rate cut. Markets now price in an 86 percent chance of a quarter-point move.

AstraZeneca rose almost 1 percent, while Unilever and British American Tobacco added about 1 percent each. Gold miners outperformed after bullion prices climbed more than 1 percent on risk aversion ahead of key US data.

Defence names dragged on the index again. BAE Systems fell 2.6 percent and Rolls Royce slipped 0.8 percent.

WH Smith jumped 5.2 percent after its chief executive stepped down following an accounting review in the company’s US operations. Software group Sage gained 3.3 percent after reporting stronger than expected annual profit.

UK Accelerates Push for a 2027 Stock Trading Tape

Alongside the market rebound, Britain’s Financial Conduct Authority confirmed it is moving forward with plans to introduce a consolidated equity trading tape in 2027. The system will combine real-time data from multiple trading venues into a single feed, aiming to improve liquidity visibility and restore confidence in London’s capital markets.

The regulator said greater transparency should help counter perceptions that UK markets are less liquid than global rivals and encourage more companies to list in London. The FCA will open a tender for a tape provider next year and will review the level of pre-trade data included after two years of operation.

The initiative arrives as the European Union prepares to select an equities tape provider by the end of the year, setting up a more competitive environment for European market infrastructure.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.