FTSE 100 today: Index slips as Bunzl slump on outlook cut; U.K. inflation eases

Summary

Bunzl (OTC:BZLFY) tumbles 25% on full-year profit warningU.K. inflation slowed to 2.6% in MarchU.K. house prices climb in FebWH Smith slips 2% on FY26 EPS cut

Investing.com -- Britain’s main stock index slipped on Wednesday, weighed down by a drop in Bunzl PLC (LON:BNZL) shares after the business supplies group cut its full-year outlook.

Bunzl pointed to a tough trading landscape and ongoing deflation as major pressures on its performance. In Q1 2025, the company reported a 2.6% increase in group revenue at constant exchange rates, though underlying revenue slipped by 0.9%.

As of 1236 GMT, the blue-chip index FTSE 100 was down by 0.2%. The British pound gained by 0.2% against the dollar to 1.32.

DAX in Germany fell by 0.2%, while the CAC 40 in France was down by 0.5%.

Cooling inflation boosts rate cut hopes

Official data showed that U.K. inflation eased more than expected in March, increasing the likelihood that the Bank of England will cut interest rates by 25 basis points to 4.25% at its May 8 meeting.

Annual consumer price inflation rose 2.6%, down from 2.8% in February and below analysts’ forecast of 2.7%, though still above the central bank’s 2.0% target. On a monthly basis, prices rose 0.3%, also under expectations and February’s 0.4% increase.

Core consumer prices, which strip out the more volatile food and energy components, climbed 0.5% in March from the previous month, while the annual rate eased to 3.4% from 3.5% in February.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

House prices climb in Feb

U.K. house prices climbed 5.4% year-on-year in February, marking the fastest annual growth since December 2022, official figures revealed.

The average property price reached £268,000 ($355,556), up from a 4.8% increase recorded in January, according to the Office for National Statistics (ONS).

Meanwhile, Eurostat’s latest data shows Eurozone inflation dropped to 2.2% in March from 2.3% in February, while EU inflation also fell to 2.5% from 2.7%, both lower than the same period last year.

Trading news

In European company earnings, Dutch chip equipment maker ASML (AS:ASML) fell 4.6% after falling short of expectations on net bookings and warned that fresh U.S. trade restrictions could weigh on demand for its key semiconductor manufacturing tools.

Shares of WH Smith PLC (LON:SMWH) fell 2.7% after the company slightly surpassed expectations in its first-half results but lowered its FY26 earnings per share outlook by 15%, pointing to the effects of its High Street business sale and increased interest expenses from refinancing.

Discoverie Group PLC (LON:DSCV) climbed 2.2% after posting a solid pre-close update, with underlying earnings expected slightly ahead of board expectations. Orders surged 15% year-on-year in Q4, boosting confidence for FY26 despite ongoing sales weakness and macro uncertainty .

Jubilee Metals Group PLC (LON:JLP) shares rose by 1.6% after reporting mixed Q3 results, with strong PGM volumes offsetting weaker chrome output. FY25 production guidance was upgraded, though copper project updates are still pending.

Hunting PLC (LON:HTG) delivered a strong Q1 performance with 14% EBITDA margin, driven by progress on Kuwait Oil Company contracts. However, net cash declined and the order book shrank, reflecting execution of existing projects and M&A activity .

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Hays Plc (LON:HAYS) Q3 trading was in line with expectations, with net fee income down 9% year-on-year. While near-term conditions remain tough, the company is focused on cost discipline and maintaining productivity

The company posted net bookings of €3.94 billion for the first quarter of 2025, below analysts’ projection of €4.89 billion.

Barratt Redrow PLC (LON:BTRW) reported steady trading conditions in the third quarter, noting a 2% year-on-year increase in private sales per outlet per week to 0.62, marginally above the level seen in January.

In other company news, Alphabet Inc’s (NASDAQ:GOOGL) Google is facing a class action lawsuit in the U.K., with potential damages exceeding £5 billion ($6.6 billion). The lawsuit accuses the tech giant of misusing its dominant position in the online search market, allegedly leading to higher prices.

Is GOOGL truely undervalued?

With GOOGL making headlines, investors are asking: Is it truly valued fairly? InvestingPro's advanced AI algorithms have analyzed GOOGL alongside thousands of other stocks to uncover hidden gems with massive upside. And guess what? GOOGL wasn't at the top of the list.

Unlock ProPicks AI