Summary

• U.K. inflation slowed to 2.6% in March

• U.K. House Price Index, Eurozone inflation data expected
• WH Smith expects full-year performance to align with market expectations.

Investing.com -- British stocks opened lower on Wednesday after the mostly positive holiday-shortened week, as official data on showed that U.K. inflation eased more than expected in March, potentially giving the Bank of England space to cut interest rates again next month.

As of 0710 GMT, the blue-chip index FTSE 100 was down by 0.35%. The British pound gained by 0.4% against the dollar to 1.32.

DAX in Germany and the CAC 40 in France were down by 0.8%.

Cooling inflation boosts rate cut hopes

The cooling trend in British inflation is increasing the probability that Bank of England policymakers will trim interest rates by 25 basis points to 4.25% at the 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.

Trading news

WH Smith (LON: SMWH ) said it expects its full-year performance to align with market expectations, supported by steady travel demand despite global economic uncertainty. According to the retailer, the second half of its financial year is off to a strong start.

Discoverie Group PLC (LON: DSCV ) posted 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 ) reported 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 .

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

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

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

What to watch

The U.K. House Price Index is scheduled for release at 08:30 GMT, providing insight into changes in home selling prices.

Eurozone inflation data is set to be released at 0900 GMT, with forecasts pointing to a slight slowdown in annual price growth to 2.2% for March, down from 2.3% in February.