A recovery in aerospace and defence stocks lifted UK’s main index on Tuesday, while investors braced themselves for a slew of global key economic data that could shape bets on the pace of potential rate cuts from major central banks this month.

The blue-chip FTSE 100 index was up 0.2% as of 0715 GMT, after kicking off September on a dull note, while the domestically-focused mid-cap FTSE 250 edged up 0.1%.

Rolls-Royce rose over 3%, after Monday’s steep losses, as Hong Kong’s Cathay Pacific Airways noted that the three of the 48 British engine supplier’s planes under inspection went through successful repairs and all of the jets were expected to resume operation by Saturday.

This boosted the aerospace and defence index rose nearly 2%, after logging its steepest one-day decline since November 2022 on Monday.

FTSE 100 drops amid aerospace and personal goods sell-off

Watches Of Switzerland Group jumped 6% after the company said it’s on track to deliver its full-year forecast.

Ashtead Group climbed 3.4% after the equipment rental company said it expects full-year results in line with previous expectations, while Hikma Pharmaceuticals rose 2% after Berenberg upgraded the British drugmaker’s shares to “buy” from “hold”.

Meanwhile, miners were the worst hit, tracking weak base metal prices. All eyes are on this month’s monetary policy decisions by some of the most influential central banks - the US Federal Reserve, the European Central Bank and the Bank of England.

As both the Fed and the ECB are widely seen cutting rates in September, any upcoming data on inflation and economic performance would be key to determine the quantum of such cuts.

While a set of US employment data, including August payrolls report, are at the top of investors’ watch list, UK’s Purchasing Managers’ Index (PMI) and housing data and Europe’s producer prices and retail sales are also due this week.