The FTSE 100 climbed 0.4% on Wednesday, buoyed by UK inflation data showing a drop to 3.0% in January from 3.4% in December. This cooling trend, down from 3.2% in November, increased expectations for Bank of England rate cuts in March and June. The pound rebounded against the dollar, rising 0.01% to 1.3560 after earlier losses tied to unemployment figures. The DAX and CAC 40 also gained, with Germany and France seeing 0.5% and 0.3% increases respectively.

BAE Systems rewarded investors with a 10% dividend increase, raising its total payout to 36.3 pence. The defense giant cited record orders driven by heightened European and US military spending, repurchasing £502 million worth of shares. Meanwhile, Glencore reported a 6% fall in core earnings to $13.5 billion, despite record copper prices, as its coal business dragged down results. The miner's adjusted EBITDA growth was offset by a 14% drop in adjusted EBIT.

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