FTSE 100 movers: Rate-sensitive banks and housebuilders rally; M&S drops

(Sharecast News) - London's FTSE 100 was flat at 10,492.89 in afternoon trade on Wednesday. Rate-sensitive banks and housebuilders were the top performers as the latest UK inflation data took a rate hike off the table.

Figures from the ONS showed the consumer prices index rose by 2.8% in the 12 months to May, unchanged on April and versus consensus for a rise to 3.0%.

Barclays, Persimmon, Standard Chartered, Barratt Redrow and Berkeley all rose.

Russ Mould, investment director at AJ Bell, said: "Inflation holding steady was the last thing anyone expected in the face of higher oil prices caused by the Iran war. Central banks typically raise interest rates to fight inflation, and the latest reading suggests the Bank of England doesn't need to rush to change monetary policy direction.

"While banks would normally benefit from higher interest rates, the inflation reading is positive for consumer and business sentiment as it implies cost pressures aren't as severe as previously expected. That in turn could drive greater appetite for borrowing, including mortgages.

"Housebuilders are at the mercy of interest rates and a significant shift in rate expectations over the past week will be music to their ears. A week ago, the market was pricing in two rate hikes by early 2027 - that's now been pared back to just one hike this December and no further change for at least the first half of next year."

On the downside, food, clothing and homeware retailer Marks & Spencer was the biggest loser on the index, closely followed by property portal Rightmove and Vodafone.

FTSE 100 - Risers

Barclays (BARC) 499.70p 2.59% Pershing Square Holdings Ltd NPV (PSH) 3,986.00p 2.20% Persimmon (PSN) 1,093.00p 1.91% Standard Chartered (STAN) 2,025.00p 1.88% Weir Group (WEIR) 2,480.00p 1.55% Spirax Group (SPX) 7,035.00p 1.37% Barratt Redrow (BTRW) 258.60p 1.33% Berkeley Group Holdings (The) (BKG) 3,544.00p 1.32% The Sage Group (SGE) 833.80p 1.31% Games Workshop Group (GAW) 20,520.00p 1.08%

FTSE 100 - Fallers

Marks & Spencer Group (MKS) 359.80p -3.36% Rightmove (RMV) 427.20p -2.91% Vodafone Group (VOD) 109.20p -2.67% St James's Place (STJ) 1,132.50p -2.66% Rio Tinto (RIO) 7,709.00p -2.41% Compass Group 11 (CPG) 32.79p -2.29% LondonMetric Property (LMP) 182.10p -2.20% BT Group (BT.A) 193.60p -2.17% Sainsbury (J) (SBRY) 303.00p -2.13% Halma (HLMA) 3,958.00p -2.13%