London stocks slightly declined on Wednesday, following the release of stronger-than-expected domestic inflation data, which led investors to reduce their expectations for an interest rate cut by the Bank of England in August. The FTSE 100 index was flat to down, marking a potential third consecutive session of decline, while the FTSE 250 also dipped. The latest British consumer prices data revealed that inflation remained at 2%, contrary to predictions of a slight decrease, adding to the uncertainty surrounding the timing of the BoE's easing measures. The likelihood of a rate cut in August decreased to 33% from 49% prior to the data release. Yields on the 2-year government bond rose slightly, and the pound strengthened against the dollar, further impacting market sentiment.
Patrick Munnelly is a journalist who writes for Digital Look, a web financial group company, and TalkMarkets. He covers a wide range of topics related to financial markets, including market outlooks, economic indicators, and stock market analysis. Patrick's articles provide insights and updates for investors and traders.