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FTSE 100 inches higher on commodity strength; US data in focus

Published 11/09/2024, 05:36 pm
Updated 11/09/2024, 05:46 pm
© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo
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By Purvi Agarwal

(Reuters) - London stocks edged higher on Wednesday, supported by precious and base metal miners, while investors maintained a cautious stance ahead of a crucial U.S. inflation print later in the day.

The blue-chip FTSE 100 was up 0.1%, as of 0712 GMT, while the mid-cap FTSE 250 added 0.2%.

Industrial and precious metal miners inched 1.8% and 1.4% higher, respectively, the biggest gainers in the index, as a softer dollar and rate-cut optimism lifted copper and gold prices. [GOL/] [MET/L]

Heavyweight energy shares gained 1.2% after oil prices climbed, as concerns about Hurricane Francine disrupting output in the United States, the world's biggest producer, outweighed worries about weak global demand. [O/R]

On the flip side, industrial support services stocks led declines with a 2.4% loss.

The sector was pulled down by Rentokil Initial, which slipped 17.8% after the pest control company announced jobs cuts to address cost overruns.

Data showed Britain's economic production grew by less than expected in month-on-month terms in July, showing no change after zero growth in June.

"The figures are not bad enough to change the course the BoE is sailing on. An unexpected (cut) or a cut that's too large might be a signal to investors that the economic prognosis is significantly worse," said Nick Saunders, chief executive officer of trading platform Webull UK.

Investors awaited the release of U.S. consumer prices index (CPI) numbers for more clues on the stance of the Federal Reserve on rate cuts this year after economic data last week did little to clear the uncertainty.

© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo

Rightmove fell 2% after the real estate portal rejected the 5.6 billion pound ($7.32 billion) cash-and-stock takeover proposal from Australia's REA Group.

Shares of WH SMith jumped 12% after the company reported a higher annual revenue and announced a buyback plan worth 50 million pounds.

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