UK Stock Market Preview for 18 December 2025: BoE Rate Decision, Inflation Surprise, FTSE 100 Movers and Global Cues
London investors head into Thursday’s session (18/12/2025) with a single theme dominating the pre-open conversation: a surprise drop in UK inflation has strengthened expectations that the Bank of England will cut rates later today—and the market has already started repricing around that outcome. Office for National Statistics+1 Wednesday’s trading delivered a textbook “rates down, risk up” response in London: the FTSE 100 climbed and rate-sensitive UK sectors—banks and homebuilders—helped lead the rally, while sterling weakened sharply after the inflation print. Reuters That said, the overnight global backdrop is less straightforward. US equities slid hard, with tech and chips hit by renewed worries about the sustainability of AI