FTSE 100 edges up as investors await key inflation data

London’s FTSE 100 edged up 0.3 per cent on Tuesday, while the FTSE 250 increased by 0.1 per cent as investors looked ahead to crucial inflation data from the United States and the United Kingdom.

The indexes were poised to extend their gains for a third consecutive session following a second straight week of losses.

The pharma, biotech, and industrial support services sectors led the broader gains in London, each rising by 0.7 per cent.

However, the automobile and parts sector lagged, with Dowlais Group’s shares plunging 10.2 per cent after the company announced plans to explore a sale of its GKN Powder Metallurgy unit and cut its annual revenue forecast. This drop led the sectoral index to its lowest level since early 2009.

Industrial metal miners fell 0.5 per cent due to declining copper prices as investors took profits. UK economic data showed a slowdown in average earnings growth and an unexpected drop in the unemployment rate, causing the pound to strengthen against the dollar.

Ruth Gregory, deputy chief UK economist at Capital Economics, noted that the easing in wage growth would likely be welcomed by the Bank of England, though a rate pause is expected in September.

Among other notable movements, Just Group surged 10 per cent to lead the FTSE 250 after reporting first-half earnings that exceeded market expectations and raising its 2024 profit forecast.

Attribution: Reuters

Subediting: M. S. Salama