Britain's FTSE 100 up 0.3% || Germany's DAX up 1.3% || France's CAC 40 up 0.9% || Spain's IBEX up 0.3%

Britain's FTSE 100 up 0.3% || Germany's DAX up 1.3% || France's CAC 40 up 0.9% || Spain's IBEX up 0.3%

The FTSE 100 closed slightly higher on Wednesday, rising 0.3% to 9203.01, as investors weighed significant investment announcements from Microsoft and GSK, along with fresh inflation data and the U.S. Federal Reserve’s rate decision. The index was supported by gains in utilities and housebuilders, despite lagging mining stocks .

Microsoft pledged its largest-ever UK commitment, announcing a $30 billion (£22 billion) investment spread over four years. Half of the funds will go into capital expenditure, including the construction of the country’s most powerful supercomputer equipped with 23,000 NVIDIA GPUs in partnership with Nscale. The announcement coincided with U.S. President Donald Trump’s second state visit and was accompanied by a broader UK-US tech deal covering AI, quantum computing, and nuclear research .

GSK also unveiled a $30 billion investment in the United States over the next five years. The funds will bolster R&D and supply chain infrastructure, including a new $1.2 billion biologics facility. The plan also includes upgrades across five US manufacturing sites, with a strong emphasis on AI and digital technologies .

The FTSE 100 was buoyed by gains in Centrica and housebuilders, with Centrica gaining 2% to £167.2 and housebuilders Barratt Redrow and Persimmon rising on stronger-than-expected profits. However, miners such as Fresnillo and Rio Tinto dragged on the index .

Investors also remained focused on global macro signals. The Federal Reserve is expected to cut rates by 25 basis points, lowering the fed funds target rate down to 4%-4.25%. The market will pay close attention to Chair Jerome Powell’s comments for indications of the potential path of further cuts. The UK’s headline rate of inflation was unchanged at 3.8%, but food and drink inflation increased to 5.1%, the highest rate since early 2024 .

The European stock market showed resilience, with the pan-European STOXX Europe 600 Index rising amid expectations of a potential rate cut by the U.S. Federal Reserve. Penny stocks emerged as an intriguing area of focus, offering opportunities in smaller or newer companies at lower price points. Top picks include Addex Therapeutics, Dr. Miele Cosmed Group, and Lena Lighting, with notable financial health ratings and market potential .

Despite the positive news, investors remain cautious due to elevated food inflation, budget uncertainty, and pending central bank decisions. The FTSE 100 stabilized, and large corporations such as GSK and Microsoft investing billions into long-term projects boosted near-term sentiment, but the outlook remains clouded .