UK stocks rose on Tuesday as stronger economic data, gains in mining and banking shares, and a weaker pound helped support the FTSE 100.
The index moved higher after official figures confirmed that the UK economy grew by 0.6% in the first quarter. That was in line with the earlier estimate and marked a clear improvement from revised growth of 0.1% in the previous quarter. The data gave the market a firmer domestic backdrop, with services providing the main contribution to growth.
The pound weakened against the dollar, which helped support companies with large overseas earnings. That was relevant for the FTSE 100, where many of the largest companies generate a significant share of revenue outside the UK. The combination of firmer growth data and a softer currency gave the index a useful lift.
Mining stocks were among the main drivers of the move. Rio Tinto, Anglo American and Glencore gained as metal prices strengthened. Their advance helped push the broader market higher and showed the continued importance of commodity-linked shares to the FTSE 100.
Banks also added support. NatWest, Lloyds and HSBC moved higher, helping financial stocks contribute to the positive session. Strength in the sector suggested confidence in the domestic economy remained steady, despite uncertainty in global markets.
Defence shares were also in focus after BAE Systems rose. The company remains closely watched because of demand linked to defence spending and geopolitical risk. Its performance added another source of support to the index during the session.
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