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FTSE 100 Inches Higher After Inflation Data

U.K. stocks edged higher on Wednesday and the pound held steady, as investors react to the extension of the lockdown relaxation plan and a rise in CPI inflation past the Bank of England's 2 percent target for the first time since July 2019.

Data from the Office for National Statistics showed that U.K. consumer price inflation accelerated to 2.1 percent in May from 1.5 percent in April. This was above economists' forecast of 1.8 percent and the Bank of England's target of 2 percent.

Output price inflation came in at 4.6 percent versus 4.0 percent in April, while input price inflation increased to 10.7 percent from 10.0 percent in April.

The benchmark FTSE 100 inched up 8 points, or 0.1 percent, to 7,180 after ending 0.4 percent higher on Tuesday.

Oxford Instruments advanced 1.7 percent. The company announced the acquisition of WITec Wissenschaftliche Instrumente und Technologie GmbH, a German provider of Raman microscopy imaging solutions, for a cash-free, debt-free consideration of 42 million euros.

Tullow Oil rose over 1 percent. The company said that group production to the end of May 2021 averaged 62,000 bopd, in line with expectations.

EverArc Holdings soared 8 percent after announcing it would buy firefighting products and lubricant additives manufacturer Perimeter Solutions in a deal valued at about $2 billion.

Miners Anglo American and Glencore fell more than 2 percent after China's stockpiling body said it would release national reserves of major industrial metals in an effort to rein in surging commodities.

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