The blue-chip FTSE 100 rose 0.2% by 10:55 GMT, while the domestically focused FTSE 250 added 0.3%
International News via Reuters:
UK stocks advanced on Wednesday, led by gains in financials and mining stocks, while investors braced for a potentially tax-heavy budget.
The blue-chip FTSE 100 rose 0.2% by 10:55 GMT, while the domestically focused FTSE 250 added 0.3%.
Precious metal miners climbed 3.8% to lead the sectoral gains as gold prices hit to a near two-week high after benign U.S. economic data reinforced expectations of a Federal Reserve interest rate cut next month.
Fresnillo rose 3.9%, Endeavour Mining added 3.6%, while Hochschild gained 4.4%.
Industrial miners added about 1% as copper prices also advanced. Anglo American and Antofagasta rose 1.4% and 1.8%, respectively.
Banks advanced 0.5%, extending gains from previous session after media reports of relief from tax hike in budget. Standard Chartered gained 1.6%, while Barclays rose 0.8%.
Investors now await the autumn budget, where Finance Minister Rachel Reeves is expected to outline tens of billions of pounds in tax increases.
“Any sizable spending hikes, potentially to welfare, combined with increases to borrowing, would be a big red flag to markets, and sterling and gilts would probably sell-off hard,” said Matthew Ryan, head of market strategy at global financial services firm Ebury in a note.
On Tuesday, UK government approved 4.1% rise in minimum wage for 2026, despite complaints from some employers that this will push up prices.
Meanwhile, a survey showed the British public’s expectations for inflation over the next 12 months fell, with U.S. bank Citi saying the reading could boost the chances of a December rate cut by the Bank of England.
Also in focus was a Russia-Ukraine peace deal after Ukrainian President Volodymyr Zelenskiy signalled readiness to push forward a U.S.-backed framework to end the war. However, some uncertainty remained as Trump retracted the deadline for the deal.
Aerospace and defence gained 0.7%, with BAE Systems up 1%.
On the flip side, Beverages dropped the most, falling 0.9%, with spirits maker Diageo losing 1.4%.
Reporting by Utkarsh Tushar Hathi, Sukriti Gupta, and Rashika Singh in Bengaluru; Editing by Tasim Zahid
