UK's blue-chip index edged higher on Wednesday after a strong Wall Street session driven by earnings optimism, although data showed UK inflation hit a 40-year high again, highlighting persistent price pressures that have hurt consumer spending.
The FTSE 100 index of top UK companies (.FTSE) rose 0.1% by 0714 GMT, entering its fifth day of gains, aided by a historic reversal of the new government's failed fiscal plan that had battered the bond markets.
Meanwhile, futures signalled a strong start for U.S. stocks after Netflix Inc (NFLX.O) projected more growth ahead.
The biggest jump in food prices since 1980 pushed British inflation back into double digits in September, matching a 40-year high hit in July in a new blow for households grappling with the cost-of-living crisis.
Lloyds Banking Group (LLOY.L) and Natwest Group Plc (NWG.L) fell 3.5% and 2.2%, respectively, after a report said UK Chancellor Jeremy Hunt was preparing to raid the profits of banks.
The wider banking index (.FTNMX301010) was down 0.4%, while the investment banking & brokerages index (.FTNMX302020) dropped 0.7%.
The domestically exposed FTSE 250 index (.FTMC) slipped 0.2% after a four-day winning run. Online fashion retailer ASOS (ASOS.L) edged up 0.2% after it said it needed to rebuild its once-successful business model after forecasting a loss in the first half.
