London stocks rebounded on Wednesday amid broad-based gains after a slew of corporate updates, while investors awaited Federal Reserve Chair Jerome Powell’s testimony to gauge the US central bank’s monetary policy path.
The blue-chip FTSE 100 index was up 0.3%, after logging its worst day in nearly a month on Tuesday, while the mid-cap FTSE 250 index was up 0.2% at 0722 GMT.
Travel and leisure stocks rose 0.9%. SSP Group jumped 8.7% after the restaurant operator stuck to its fiscal year forecasts.
Precious metal miners advanced 1.2% as gold prices steadied ahead of a crucial US inflation report.
Homebuilders were the biggest laggards on the index, declining 1%.
Barratt Developments, down 3%, hit the bottom of the FTSE 100 index after forecasting an up to 7% fall in its homebuild targets for fiscal year 2025.
Energy and industrial metal miners dipped 0.2% and 0.4%, respectively, in tandem with oil and copper prices.
Investor focus is now on the second day of Powell’s Congressional testimony.
London stocks fall as financials and energy stocks drag
He stated on Tuesday that a rate cut would not be appropriate before the Fed gains more confidence in cooling inflation.
The comments come ahead of the crucial US consumer price index figures and Britain’s GDP numbers, both due on Thursday.
Bank of England’s chief economist Huw Pill is also scheduled to speak at the UK’s Asia House think tank later in the day.
Travis Perkins climbed 2.6% after the construction firm named Pete Redfern as its next CEO.
IAG topped the FTSE 100, gaining 3.2%, after Morgan Stanley upgraded the British Airways owner to “Overweight” from “Underweight”.
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