U.S. core CPI seen holding steady in Oct
Smith Group rallies after revenue outlook lift
FTSE 100 down 0.1, FTSE 250 down 0.2
Nov 13 Reuters The main UK stock indexes slipped on Wednesday as traders awaited key U.S. inflation data to gauge the path of monetary policy, while defence company Smiths Group rallied to record highs after upgrading its revenue outlook.
The bluechip FTSE 100 was down 0.1 at 1146 GMT, while the FTSE 250 index of midcap companies dipped 0.2.
Global stocks were sluggish ahead of the U.S. inflation data at 1330 GMT, which is expected to show that core consumer prices held steady in October. Traders are currently pricing a 59 chance of a 25 bps rate cut by the Federal Reserve in December.
The consensus is for the annual rate of inflation to move from 2.4 to 2.6. Any higher could trouble the market, particularly given the incoming Trump administration raising the prospect of higher inflation through various policies, said Russ Mould, investment director at AJ Bell.
UK and European markets have fluctuated since Donald Trump39;s reelection as U.S. president, as investors fretted over the possibility of a trade war hurting the European economy and disappointment over China39;s stimulus steps.
Meanwhile, still high inflation in Britain poses a risk that some drivers of price growth could be heading upwards, Bank of England interest ratesetter Catherine Mann said.
The BoE last week cut borrowing costs for only the second time since 2020 and said…