The FTSE 100 moved higher on Wednesday as rising oil and gold prices supported energy and mining shares. Political change in the UK and renewed tension involving Iran remained key sources of risk.
The index traded near 10,573 after the open before rising to around 10,684 by late morning, a gain of about 0.9%. The FTSE 250 added roughly 0.1%. The difference reflected the FTSE 100’s greater exposure to large international commodity producers.
Precious metals miners were among the strongest performers, gaining about 2.8% as gold reached a two-week high. Demand for defensive assets increased ahead of the next US Federal Reserve meeting, while geopolitical uncertainty also supported the metal.
The move improved the near-term outlook for London-listed gold miners. Higher prices can support revenue and margins, although the benefit depends on production levels, operating costs and currency movements.
Energy shares rose by around 1.4% as oil prices approached six-week highs. The increase followed concern about further escalation involving the United States and Iran, as well as possible disruption to major shipping and supply routes.
Higher oil prices can strengthen cash generation at large producers. They can also raise costs across transport, retail, manufacturing and other parts of the economy. This creates a clear split within the UK market. Commodity companies may benefit, while domestic businesses face added pressure.
Investors were also assessing the political transition to Prime Minister Andy Burnham. Attention is likely to remain on tax policy, public spending and fiscal discipline. Clear policy direction could improve confidence, while uncertainty may delay investment and weaken demand for UK-focused assets.
Recent inflation data provided some relief. British inflation eased by more than expected in the previous month, helped by lower fuel prices. However, the latest rise in crude oil suggests that some of that support may fade.
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