Heraldo de Madrid - Stocks gain as traders bet on interest rate moves

NYSE - LSE

SCS	0.12%	16.14	$
RBGPF	0.5%	82.01	$
CMSC	0.17%	23.34	$
RYCEF	-2.12%	14.64	$
RIO	0.22%	75.99	$
BCC	0.67%	75.84	$
BTI	-0.79%	57.29	$
NGG	-0.34%	75.77	$
BCE	-1.2%	23.33	$
GSK	-0.94%	48.78	$
VOD	0%	12.7	$
JRI	-0.37%	13.51	$
RELX	-0.64%	40.82	$
CMSD	0.06%	23.38	$
BP	-4.41%	33.76	$
AZN	-0.23%	91.35	$

Stocks gain as traders bet on interest rate moves

ECONOMY 17.12.2025

Stocks gain as traders bet on interest rate moves / Photo: ALEX WONG - GETTY IMAGES NORTH AMERICA/AFP

London's stock market rallied Wednesday as the pound faltered on expectations of cuts to Bank of England interest rates, after data showed UK inflation falling faster than forecast.

Text size:

Stock markets rose across Asia and Europe but London was the clear winner, as investors assessed also the outlook for US borrowing costs.

"European markets are enjoying a positive start to the day, led by the FTSE 100 which has been in buoyant mood following a welcome decline in UK inflation," noted Joshua Mahony, chief market analyst at traders Scope Markets.

London's benchmark stocks index jumped 1.7 percent in late morning deals, while Paris flattened and Frankfurt edged up.

Britain's annual inflation rate slowed to 3.2 percent in November, cementing expectations that the Bank of England will cut its main interest rate on Thursday and again on more than one occasion in 2026.

Analysts had expected inflation to have cooled only slightly to 3.5 percent from 3.6 percent in October.

Eurozone inflation remained at 2.1 percent in November, hovering just above the target set by the European Central Bank, slightly revised official data showed Wednesday.

The ECB is expected to hold interest rates steady Thursday for its fourth straight meeting with inflation in check, although debate is heating up about the path forward.

Elsewhere on Wednesday, oil prices rebounded after US President Donald Trump ordered the blockade of "sanctioned" Venezuelan tankers.

The gains pared some of the 2.7 percent in losses suffered Tuesday after the US president said a deal to end the war in Ukraine was closer than ever.

Such a move could ease sanctions on Russian oil, adding to oversupply concerns already weighing on the market.

Investors continued to study Tuesday's release of US non-farm payrolls reports, which showed that unemployment in the world's biggest economy had jumped to a four-year high of 4.6 percent in November.

Analysts said the data did little to change expectations that the Federal Reserve would likely keep key US interest rates unchanged in January.

Wall Street investors on Tuesday largely shrugged at the jobs data, with many concerned that the tech-led stocks rally over the past two years may have gone too far and that the vast sums invested in artificial intelligence might not see returns as soon as hoped.

In corporate news, the share price of Chinese chipmaker MetaX Integrated Circuits Shanghai soared more than 550 percent on its home city debut Wednesday.

- Key figures at around 1045 GMT -

London - FTSE 100: UP 1.7 percent at 9,852.74 points

Paris - CAC 40: FLAT at 8,102.42

Frankfurt - DAX: UP 0.1 percent at 24,103.70

Tokyo - Nikkei 225: UP 0.3 percent at 49,512.28 (close)

Hong Kong - Hang Seng Index: UP 0.9 percent at 25,468.78 (close)

Shanghai - Composite: UP 1.2 percent at 3,870.28 (close)

New York - Dow: DOWN 0.6 percent at 48,114.26 (close)

Euro/dollar: DOWN at $1.1720 from $1.1747 on Tuesday

Pound/dollar: DOWN at $1.3329 from $1.3422

Dollar/yen: UP at 155.46 yen from 154.80

Euro/pound: UP at 87.92 pence from 87.52

Brent North Sea Crude: UP 2.4 percent at $60.33 per barrel

West Texas Intermediate: UP 2.6 percent at $56.68 per barrel

burs-bcp/ajb/jh

N.Carrasco--HdM

Featured

Doctors in England go on strike for 14th time

Doctors in England walked out for the 14th time in less than three years Wednesday in a dispute with the government over pay and jobs.

Ghana's Highlife finds its rhythm on UNESCO world stage

On a humid Tuesday night in Accra, Zen Garden is alive with sound, movement and memory as Highlife melodies spill into the open air, drawing families, friends and office workers who sway long past midnight as if the weekend has come early.

France probes 'foreign interference' after malware found on ferry

France is probing possible foreign interference after a Latvian national was arrested and charged over the discovery on a passenger ferry of malware capable of allowing the vessel's operating systems to be be controlled remotely, the interior minister said Wednesday.

Bleak end to the year as German business morale drops

German business sentiment fell to its lowest level in seven months in December, a survey showed Wednesday, with Europe's beleaguered top economy set to end the year on a gloomy note.