London's FTSE 100 pared strong gains but still closed up about 0.9% at 9,774 on Wednesday, the highest in over a month, after softer-than-expected inflation data boosted rate cut expectations and weakened the pound. BoE policymakers will announce their final decision of the year on Thursday, with a rate cut of 25 bps priced in. UK inflation fell by more than expected in November to the lowest level in eight months. Housebuilder Barratt Redrow climbed 3.7% to the top of the index on speculation of a looming rate cut. Phoenix Group (+3.3%) followed after an upgrade to ‘buy’ at UBS, while HSBC (+2.7%) also advanced after an upgrade to ‘outperform’ at KBW. Miners, utilities, banks and oil companies also posted solid gains. On the flip side, DCC fell 3.6% and Bunzl 2%, the latter penalized by its projection of a slight year-on-year decline in the 2026 operating margin.