(Reuters) -London stocks rose on Thursday, boosted by industrials and energy stocks, while investors assessed corporate earnings and awaited a key inflation report from the U.S. due later in the day.
London Stocks Climb as Investors Evaluate Earnings and Inflation Data
Market Overview and Key Stock Movements
(Reuters) - London stocks rose on Thursday, boosted by industrials and bank stocks, as investors assessed corporate earnings and latest U.S. inflation data.
Performance of Major Indices
The blue-chip FTSE 100 closed up 0.8%, its best day in over three weeks. The domestically focused mid-cap index rose 0.7%.
Sector Performance
In the U.S., data showed consumer prices rose more than expected in August, but a surge in first-time applications for unemployment aid last week appeared to keep the Fed on track to cut interest rates next Wednesday.
Key Stock Highlights
In London, aerospace and defence stocks rose 3.5% to hit a record high. BAE Systems rose 6.3%, Babcock gained 2.7%, Rolls-Royce rose 2.2%, and Avon jumped 7.9%.
Economic Indicators and Government Actions
Heavyweight bank stocks rose 1.1%. Top lenders HSBC and Barclays advanced 1.5% and 1.2% respectively.
Healthcare stocks added 0.6%, with GSK rising 1.9%.
On the flip side, personal goods stocks declined 1.7%, with Burberry falling 2.8%.
Energy stocks edged down 0.2%, tracking lower oil prices. Shell was down 0.4%.hcut its annual production forecast for the second time in nearly four months.
Among other stocks, Compass Group rose 2.8% after Deutsche Bank upgraded the food catering firm's rating to "buy" from "hold".
Ticketing firm Trainline jumped 12.2% after saying it expects to report annual adjusted core profit at the top end of its forecast range.
Gambling tech firm Playtech hit a record high earlier in the day and was last up 3.9% on positive first-half results.
M&G fell 1.8% as it traded ex-dividend.
The European Central Bank left interest rates unchanged as expected and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.
Meanwhile, British finance minister Rachel Reeves promised tax reform to help small business expansion.
(Reporting by Sukriti Gupta; Editing by Sahal Muhammed and Kevin Liffey)
