Sept 11 (Askume) – London stocks rose on Wednesday, supported by precious and base metals miners, while investors remained cautious ahead of key U.S. inflation data due later in the day.
By 0712 GMT, the blue-chip FTSE 100 (.FTSE) was up 0.1% and the mid-cap FTSE 250 (.FTMC) was up 0.2%.
Industrial stocks (.FTNMX551020) and precious metals miners (.FTNMX551030) rose 1.8% and 1.4%, respectively, to become the top gainers on the index, as a weaker dollar and optimism about interest rate cuts boosted copper and gold prices.
Heavyweight energy stocks (.FTNMX601010) rose 1.2% after oil prices rose as worries about Hurricane Francine disrupting output in the world’s top producer the United States outweighed concerns about weak global demand.
On the other hand, Industrial Support Services stock (.FTNMX502050) declined 2.4%.
The sector was pressured by Rentokil Initial (RTO.L) , which declined 17.8 % after the pest control company announced job cuts to address cost increases.
Data showed UK economic output rose less than expected in July from the previous month, with no change after zero growth in June.
“These numbers are not enough to change the Bank of England’s direction. An unexpected (rate cut) or very large cut could signal to investors that the economic outlook is significantly worse,” said Nick Saunders, chief executive of the platform Webull UK.
Investors were awaiting the release of US consumer price index (CPI) data for more clues on the Fed’s stance on cutting interest rates this year, as last week’s economic data did nothing to dispel uncertainty.
Rightmove (RMV.L) fell 2% after the property portal rejected a 5.6 billion pound ($7.32 billion) cash and stock offer from Australia’s REA Group (REA.AX) .
WH Smith (SMWH.L)The company’s shares rose 12% after reporting an increase in annual revenue and announcing a £50m buyback programme .
