London stocks ended higher as technology shares rallied, while the dollar strengthened following robust US inflation data. The FTSE 100 index closed up 83.88 points, or 0.8%, at 10,835.47. The FTSE 250 gained 178.39 points, or 0.7%, to 24,925.04, and the AIM all-share rose 4.75 points, or 0.6%, to 764.29.
In Europe, the CAC 40 in Paris climbed 0.7%, and the DAX 40 in Frankfurt rose 1.2%. US equities were broadly higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 1.2%, and the Nasdaq Composite jumping 1.9% around the London close.
Tech Stocks Surge on CoreWeave Results
US technology stocks rallied after well-received results from CoreWeave and ahead of Anthropic's initial public offering, which is likely next week. Shares in neo-cloud provider CoreWeave leapt 24% after it reported results ahead of guidance, raised its outlook, and sought to address financing concerns in its third-quarter results delivered after the US market close on Tuesday.
"We feel confident in our ability to fund our business for growth even in the current macroeconomic conditions," chief financial officer Nitin Agrawal told analysts on the earnings call. "We are not a growth at all cost business," he added. David Morrison, analyst at Trade Nation, said the news provided "welcome relief for AI-adjacent companies, and investors, amid a difficult period."
Chip makers Nvidia, Advanced Micro Devices, and Intel were in demand, rising 4.5%, 7.1%, and 8.5% respectively, while Micron Technology leapt 12%. In London, Polar Capital Technology Trust ended up 4.0%, and Computacenter advanced 4.7%.
Dollar Strengthens on Inflation and Fed Comments
The dollar continued to gain ground after Tuesday's hot US inflation print and "hawkish" remarks from Federal Reserve officials. Federal Reserve governor Christopher Waller told a conference in London on Tuesday that he was minded to vote for a 50 basis point rate hike in December should inflation continue to rise. Other Fed officials also spoke, with Dallas Fed president Lorie Logan calling for two quick 25-basis point rate hikes, Philadelphia Fed president Anna Paulson saying she wants gradual rate hikes, and Chicago Fed president Austan Goolsbee warning of a "real inflation issue."
Goldman Sachs added another 25-basis point rate hike to its forecast for March next year, having already pencilled in an increase of the same size at the December meeting. Goldman analysts wrote that a "hike could come earlier in January, but we think March is a bit more likely because we expect the November and December inflation reports to be softer but then expect larger start-of-the-year price increases amidst ongoing cost pressures to boost inflation in January."
The pound was quoted at 1.3284 dollars late Wednesday afternoon, down from 1.3323 dollars at the same time on Tuesday. Against the euro, sterling firmed to 1.1974 euros from 1.1949 euros. The euro was lower at 1.1095 dollars from 1.1150 dollars, and the dollar was higher against the yen at 159.83 yen from 158.79 yen. US bond markets were closed Wednesday for Veterans' Day.
Oil Rises on Iran Threat; Corporate Moves
Oil prices moved higher after Iranian security chief Mohsen Rezaei threatened on Wednesday to strike US bases beyond the Middle East, including in Europe, if they were used for attacks against the Islamic republic. "If American aircraft take off from an American military base, even one located in a European country or some other distant region, to bomb Iran, we will strike those bases as well," Mr Rezaei said in an interview with Lebanon's Al Mayadeen TV. Brent oil was trading at 94.03 dollars a barrel on Wednesday, higher than 91.74 dollars late Tuesday. The gains supported BP, up 2.7%, and Ithaca Energy, up 2.1%.
In London, Bloomberg reported that the UK Government is unwilling to accept automatic alignment of British financial services regulations with those of the EU, citing UK officials. Under the proposed mechanism, the UK would automatically adopt EU regulations in certain sectors. However, the government is seeking to preserve the City of London's regulatory independence and does not want financial services included in any such arrangement, according to people familiar with the discussions cited by Bloomberg.
On the FTSE 100, Spirax gained 3.6% after reiterating its full-year guidance, supported by stronger organic sales growth and improved profit margins. On the FTSE 250, Asos soared 6.9% as Investec upgraded the retailer to 'buy' from 'hold', while Funding Circle rose a further 6.8% after Tuesday's raised guidance.
Taylor Wimpey fell 4.5% as it guided for full-year adjusted operating profit at the bottom end of the consensus range and trimmed its completions outlook after a "subdued" autumn selling season. "The housing market has remained challenging during the autumn selling season with increasing mortgage rates placing further pressure on affordability during this period," the housebuilder said in a trading statement. RBC Capital Markets analyst Anthony Codling said: "Mortgage rates are doing to Taylor Wimpey what build cost inflation did in 2022: eroding the demand just as the supply is rising." "Outlets are up, strategic conversion has surged, but demand is down – it's all dressed up with nowhere to sell," he added.
ITV fell 3.5% as it said it was cutting costs by £30 million after reporting lower-than-forecast advertising sales in its third quarter. ITV chief executive Dame Carolyn McCall said demand for advertising in the second half of 2026 has weakened. "This is due to continuing broader macroeconomic uncertainty, increased digital advertising on global streaming platforms and the impact of less healthy food regulations which came into effect on October 1 2025," she explained. The latter includes a ban on advertising identifiable less-healthy food and drink products on TV and on-demand programme services between 5.30am and 9pm.
Gold was quoted at 4,000.66 dollars an ounce on Wednesday, lower than 4,025.90 dollars on Tuesday. The biggest risers on the FTSE 100 were Computacenter, up 220.00p at 4,928.00p, Polar Capital Technology Trust, up 22.50p at 590.00p, Spirax Group, up 265.00p at 7,620.00p, Halma, up 94.00p at 3,564.00p, and BP, up 14.80p at 567.00p. The biggest fallers were JD Sports Fashion, down 2.94p at 94.66p, Babcock International Group, down 22.00p at 1,040.00p, GSK, down 30.00p at 1,887.00p, Associated British Foods, down 25.00p at 1,984.00p, and Kingfisher, down 4.20p at 369.90p.
Thursday's global economic events calendar includes UK gross domestic product, industrial production, manufacturing production, and trade figures, followed by US initial jobless claims and existing home sales data. The local corporate calendar has half-year results from Burberry, United Utilities, and 3i Group, with Rolls-Royce updating on trading.
