London stocks climb as inflation data spurs rate cut bets; Barclays gains on share buyback (updated)

Liberty Global

22/10/2025 17:11

FTSE 100 up 1%, FTSE 250 up 1.4%

Barclays gains on share buyback

Inflation rate below BoE expectations

ITV falls after largest shareholder reduces stake

Updates after markets close

Oct 22 (Reuters) - London stocks rose for a third straight day on Wednesday as investors ramped up bets on interest rate cuts from the Bank of England after data showed that inflation had unexpectedly held steady.

British lender Barclays BARC.L advanced 5% among the top movers on the FTSE 100 index after announcing a surprise 500 million-pound ($670 million) share buyback and upgrading a key profitability target for the year. This boosted the bank's index .FTNMX301010 by 1.5%.

Inflation for the month of September was held at 3.8%, below the Bank of England's estimates of 4%, and raising bets on a rate cut this year. Traders see a roughly 75% chance that the BoE's Monetary Policy Committee will cut the bank rate to 3.75% from 4% at its December meeting.

That was up from about a 46% chance before the data, which "could give the central bank the confidence to carry out one more rate cut most likely in December, which would be another win for the government", said Victoria Scholar, head of investment at Interactive Investor.

The data also brought much-needed relief ahead of the November budget for finance minister Rachel Reeves, who along with BoE policymakers has been trying to navigate through sticky inflation and slow economic growth.

The blue-chip FTSE 100 .FTSE gained 1%, while the mid-cap focused FTSE 250 .FTMC advanced 1.4%.

Oil majors BP BP.L and Shell SHEL.L gained 1.8% and 1.7%, respectively, as oil prices edged higher. O/R

Among individual stocks, Rio Tinto RIO.L advanced 2.1% after sources said the miner explored a potential asset-for-equity swap with Chinalco which would trim the Chinese investor's 11% stake. That would help the company to resume buybacks and pursue new strategic deals.

On the flip side, ITV ITV.L shares slid 7.8% after the broadcaster said its largest shareholder Liberty Global LBTYA.O reduced its stake to 5% from 10% in the company. The stock was the worst performer in the FTSE 250.

($1 = 0.7451 pounds)

 (Reporting by Avinash P; Editing by Shailesh Kuber and Ed Osmond)