London stocks closed higher on Wednesday as softer UK inflation supported sentiment, while rising oil prices kept geopolitical risks in focus.
The FTSE 100 rose 131.06 points, or 1.2%, to 10,716.97. The FTSE 250 gained 174.23 points, or 0.7%, to 23,926.63, while the AIM All-Share advanced 1.2% to 775.08.
Sterling was little changed against the dollar at US$1.3377, compared with US$1.3375 at Tuesday’s London close. Against the euro, the pound edged lower to EUR1.1717. UK inflation fell by more than expected in June, weakening the case for further Bank of England rate rises.
Brent crude rose above US$95.43 a barrel, extending gains for a fourth consecutive session. The move followed President Donald Trump playing down the prospect of talks with Tehran and warning of further military action. Oil prices have risen by around 20% this month as Washington and Tehran continue to exchange fire.
Gold also advanced, rising to US$4,157.48 an ounce from US$4,077.93, supporting gains among London-listed miners.
On the FTSE 250, Greencore jumped 8.5% after raising full-year profit guidance following a strong third quarter. The convenience food group now expects adjusted operating profit from continuing operations of between £234 million and £242 million.
easyJet fell 12% after Reuters reported that the European Union is preparing a review of airline ownership rules to prevent foreign investors from taking control of regional carriers. JD Wetherspoon lost 4.2% after warning that full-year profit will be below market expectations due to higher costs and slightly weaker final-quarter sales.
In New York, stocks were mostly higher, with the Dow Jones up 0.3%, the S&P 500 rising 0.1% and the Nasdaq Composite slipping 0.1%.
Thursday’s economic calendar includes the European Central Bank interest rate decision and weekly US jobless claims. The UK corporate calendar includes updates from Centrica, Relx, BT Group, Airtel Africa, Anglo American, 3i Group and easyJet.
