London stocks opened higher on Wednesday, prompting bets of an earlier rate cut after data showed that the British economy slowed to a halt in April, while pest control firm Rentokil Initial added to the gains.
By 7:07 GMT, the blue-chip FTSE 100 was up 0.5% at 8,185.63 points, set to snap a three-day losing steak. The mid-cap FTSE 250 edged 0.2% higher.
In the past two weeks, the benchmark index has dipped thrice below the 8,200 level, often regarded as one of the key signals indicating a potential shift towards a correction.
Meanwhile, a swift rebound in Britain’s economy in early 2024 came to a halt in April after data showed economic output was flat for the month.
Among individual stocks, Rentokil Initial surged 13.8% after Bloomberg News reported that Nelson Peltz’s Trian Fund Management has amassed a significant stake in the pest-control firm.
London stocks up as labour market data shows signs of cooling
Legal & General lost 4.2% after the life insurer said it would offer a 200 million pound ($254.9 million) share buyback and merge its investment units.
Across the pond, investors are bracing for US inflation data along with the Federal Reserve’s monetary policy decision. Both are due later on Wednesday.
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