London equities moved higher on Wednesday, supported by gains across mining, banking and housebuilding shares as markets focused on inflation, commodity prices and upcoming central bank decisions.
The FTSE 100 rose around 0.4% in morning trading, while the FTSE 250 also advanced. The broader move reflected improving sentiment across several key sectors, with miners benefiting from stronger metals prices and rate-sensitive stocks attracting renewed attention.
Mining shares were among the strongest contributors as commodity prices firmed. The sector’s performance helped support the wider index and reinforced the importance of London’s substantial exposure to global resources companies.
Oil prices also eased after a two-day rise, reducing some of the pressure that higher energy costs can place on inflation expectations and bond markets. Reports of additional Saudi crude cargoes moving through Oman contributed to the softer oil price environment.
UK inflation rose to 3.1% in August, its highest level in five months. However, underlying inflation excluding the impact of sharply higher energy costs remained stable. The figures kept the outlook for interest rates firmly in focus without materially weakening market sentiment.
Attention was also on the US Federal Reserve, which was due to announce its latest interest-rate decision later in the day. Markets were expecting a 25-basis-point increase. The Bank of England was scheduled to announce its own decision on Thursday, with expectations centred on rates being left unchanged for now.
Housebuilders also delivered a strong showing. Barratt Redrow shares advanced after the company reported improved reservation rates, a solid order book and profit ahead of forecasts.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
