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London’s FTSE 100 dipped into negative territory on Wednesday after enduring its fourth consecutive day of losses. While initial gains in healthcare and consumer staples offered some support, a slowdown in inflation fuelled speculation about a potential interest rate cut in December. UK inflation recorded its first decline since May, giving the government a breather ahead of next week’s annual budget and boosting the odds of a rate reduction by the Bank of England. Market projections now suggest an 86% probability of a quarter-point cut next month. Members of the Monetary Policy Committee are expected to closely analyse the details of the Autumn Budget, and if it proves as restrictive and growth-limiting as anticipated, a December rate cut seems increasingly likely. In line with this sentiment, a Reuters poll revealed that most economists foresee a rate cut next month, with another expected early next year. 

On the stock front, consumer goods giants like Unilever and British American Tobacco helped lift the FTSE 100, each climbing around 1%. Pharmaceutical heavyweight AstraZeneca rose 0.8%, while the broader healthcare sector gained 0.5%. Industrial metal miners edged up 0.3%, and precious metal miners surged 4.7%, driven by a more than 1% jump in gold prices as investors sought safe havens ahead of key U.S. economic data. Meanwhile, UK banking stocks extended their losing streak, slipping 0.4% for a fifth straight session. Aerospace and defence stocks took a hit, falling 2%, with BAE Systems and Rolls-Royce declining 2.6% and 0.8%, respectively. The household goods and construction sectors also dropped 0.7%, as government figures showed the smallest annual rise in house prices since May. Among standout performers, WH Smith saw its shares jump 5.2% after the travel retailer announced CEO Carl Cowling’s resignation following an independent review that uncovered accounting issues in its U.S. division. Sage Group also made headlines, climbing 3.3% after the software company reported annual operating profits that beat expectations

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