Sept 11 (Reuters) – London stocks rose on Thursday, boosted by industrials and bank stocks, as investors assessed corporate earnings and latest U.S. inflation data.
The blue-chip FTSE 100 (.FTSE), closed up 0.8%, its best day in over three weeks. The domestically focused mid-cap index (.FTMC), rose 0.7%.
In the U.S., data showed consumer prices rose more than expected in August, but a surge in first-time applications for unemployment aid last week appeared to keep the Fed on track to cut interest rates next Wednesday.
In London, aerospace and defence stocks (.FTNMX502010), rose 3.5% to hit a record high. BAE Systems (BAES.L), rose 6.3%, Babcock (BAB.L), gained 2.7%, Rolls-Royce (RR.L), rose 2.2%, and Avon (AVON.L), jumped 7.9%.
Heavyweight bank (.FTNMX301010), stocks rose 1.1%. Top lenders HSBC (HSBA.L), and Barclays (BARC.L), advanced 1.5% and 1.2% respectively.
Healthcare stocks (.FTNMX201030), added 0.6%, with GSK (GSK.L), rising 1.9%.
On the flip side, personal goods (.FTNMX402040), stocks declined 1.7%, with Burberry (BRBY.L), falling 2.8%.
Energy stocks (.FTNMX601010), edged down 0.2%, tracking lower oil prices. Shell (SHEL.L), was down 0.4%.hcut its annual production forecast for the second time in nearly four months.
Among other stocks, Compass Group (CPG.L), rose 2.8% after Deutsche Bank upgraded the food catering firm’s rating to “buy” from “hold”.
Ticketing firm Trainline (TRNT.L), jumped 12.2% after saying it expects to report annual adjusted core profit at the top end of its forecast range.
Gambling tech firm Playtech (PTEC.L), hit a record high earlier in the day and was last up 3.9% on positive first-half results.
M&G (MNG.L), fell 1.8% as it traded ex-dividend.
The European Central Bank left interest rates unchanged as expected and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.
Meanwhile, British finance minister Rachel Reeves promised tax reform to help small business expansion.
Reporting by Sukriti Gupta; Editing by Sahal Muhammed and Kevin Liffey
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