The FTSE 100 closed modestly higher on Wednesday as strong gains from Next and mining stocks outweighed weakness in Asia-focused financial companies.
The blue-chip index added 8.92 points, or 0.1%, to 10,888.30, while the FTSE 250 gained 0.7% to 24,632.63. The AIM All-Share rose 1.0% to 781.78.
Sentiment was supported by stronger-than-expected UK economic data, with the services PMI rising to 52.1 in July from 48.8 in June, while the composite PMI climbed to 52.2, signalling a return to business growth as demand for technology services improved and consumer spending showed signs of recovery.
Next was the standout blue-chip performer, climbing 5.7% after raising profit guidance for the 20th time since the start of financial 2024. Full-price sales increased 9.2% in the second quarter, driven by strong international online demand and better-than-expected trading.
Mining shares also advanced for a second consecutive session as precious metal prices strengthened. Endeavour Mining rose 5.7%, Fresnillo gained 4.5%, and Glencore added 4.1% after announcing a special dividend, a new share buyback programme and plans for an Australian listing.
The main drag on the index came from Asia-focused financial stocks. Prudential fell 6.4%, HSBC lost 4.7%, and Standard Chartered slipped 1.6% following reports that Chinese tax authorities had begun levying personal income tax on returns from offshore insurance policies.
Oil prices continued to ease amid optimism that negotiations between the US and Iran could lead to the reopening of the Strait of Hormuz. Brent crude declined to US$79.47 a barrel, while the Dow Jones traded 0.9% higher in afternoon trading, with the S&P 500 up 0.2% and the Nasdaq broadly unchanged.
Investors now turn their attention to Thursday’s UK construction PMI, US weekly jobless claims and corporate results from Admiral, Persimmon and Diageo.
