17.09.202508:14:41UTC+00FTSE 100 Attempts Rebound

On Wednesday, the FTSE 100 experienced a modest increase, halting its three-day downturn following a 0.9% decline on Tuesday. Driving the recovery, Centrica saw its shares climb over 3% after Morgan Stanley raised its rating of the stock to 'overweight' for the first time in two years. This upgrade was attributed to Centrica's strategic investments in projects such as Sizewell C and the Grain LNG terminal. Morgan Stanley highlighted Centrica as its preferred choice among UK utilities, pointing out its low sensitivity to yield fluctuations despite recent volatility in the gilt market. However, not all news was positive, as AstraZeneca's shares fell by 0.7% due to the failure of its asthma drug Fasenra in a second advanced trial for chronic obstructive pulmonary disease (COPD), casting doubt on its respiratory product line.

In terms of economic indicators, UK inflation maintained a rate of 3.8% year-on-year in August, matching the 18-month high observed in July and aligning with market forecasts. This data, combined with the recent employment report, has kept expectations for Bank of England policy unchanged, with markets anticipating a modest 8 basis point reduction in rates by the end of the year. Furthermore, later in the day, the US Federal Reserve is largely expected to announce a 25 basis point cut in interest rates.