Market Analysis

London stocks opened higher on Wednesday, sparking expectations of an earlier rate cut following reports that the British economy stagnated in April. Pest control company Rentokil Initial contributed to the gains.

As of 7:07 GMT, the FTSE 100 rose by 0.5% to 8,185.63 points, poised to end a three-day decline. The FTSE 250 also saw a modest 0.2% increase.

Over the past fortnight, the index dipped below the 8,200 mark on three occasions, often seen as a signal of a potential market correction.

Britain's economic recovery in early 2024 halted abruptly in April as data indicated no growth in economic output for the month.

Among specific stocks, Rentokil Initial surged 13.8% after reports from Bloomberg revealed that Nelson Peltz's Trian Fund Management had acquired a substantial stake in the pest control firm.

Conversely, Legal & General saw a 4.2% decline after announcing a £200 million ($254.9 million) share buyback and the consolidation of its investment units.

Across the Atlantic, investors are preparing for U.S. inflation figures and the Federal Reserve's monetary policy decision, both scheduled for later in the day.

Paraphrasing text from "Reuters" all rights reserved by the original author.