FTSE 100 Rebounds on Wednesday

The FTSE 100 traded 0.5% higher on Wednesday after falling 0.4% in the previous session, as easing oil prices supported sentiment despite a fresh rise in UK inflation. Consumer prices increased 3.1% year-on-year in August, up from 2.9% in July and matching market expectations, although above the Bank of England’s 2.8% forecast. Higher motor-fuel prices, linked to the ongoing Iran conflict, and increased airfares contributed to the acceleration. Markets are now focused on the Federal Reserve’s decision later today and the Bank of England’s meeting on Thursday. Barratt Redrow surged more than 7% after reporting stronger-than-expected annual results, while Persimmon gained 3%. Banks including Standard Chartered, NatWest, Lloyds Banking Group and HSBC all rose more than 1.5% after JPMorgan forecast stronger third-quarter trading and investment-banking revenue. Entain fell more than 1% following reports that UK officials are considering higher taxes on slot machines.