UK shares gain as investors assess company news, economic data
UK shares edged higher on Thursday, with the midcap index hitting a two-week peak as investors digested a mixed bag of corporate results and mulled the outlook for interest rates after data indicated softening consumer spending.
The internationally focused FTSE 100 rose 0.4% by 1100 GMT, while the domestically focused midcap index gained 0.6%.
Traders also scrutinised Shell's latest comments after the oil giant denied reports of ongoing talks to acquire rival BP. Shares in both energy companies traded marginally higher in the morning.
Industrial and precious metal miners led sectoral gains, tracking higher mineral prices as a weaker dollar made resources cheaper for holders of other currencies.
Fresnillo, Antofagasta, Anglo American and Endeavour Mining each added over 2%.
Car distributor Inchcape gained 6.2% to top the midcap FTSE index after maintaining fiscal-year outlook through cost-cutting measures that offset U.S. tariffs and increased competition.
The midcap index has outperformed the FTSE 100 this quarter and is on track for its biggest quarterly rise since late 2020.
Analysts note that domestically focused companies have been relatively insulated from trade uncertainties, while the UK remains among the few countries to have signed a trade deal with the United States.
On the data front, British retail sales slumped this month and expectations within the industry for July also deteriorated, a Confederation of British Industry survey showed.
Recent data reports have signalled a softening economy, and traders are now pricing in a 25 basis point Bank of England rate cut in September, according to LSEG data.
Among other stocks, Associated British Foods rose 1.1% after the food retailer said it would close the UK's largest bioethanol plant by September unless the government provides support — potentially the first casualty of Britain's tariff deal with the United States.
Greeting card retailer Moonpig slumped 9.6% to touch a more than two-month low after forecasting slower earnings growth and announcing its CEO's departure.
Outsourcing firm Serco rose 2% on expectations of North American market driven first-half growth due to a high volume of defence contracts from last year.
Consultancy Next 15 Group slumped 25% after warning full-year 2026 profit would significantly miss market expectations.
(Reporting by Twesha Dikshit; Editing by Tasim Zahid)
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