The UK’s benchmark FTSE 100 opened higher on Thursday, led by gains in GSK following the settlement of lawsuits in the United States, while traders look out for crucial US inflation data for more clarity on Federal Reserve rate cuts.

The blue-chip FTSE 100 index was up 0.3% by 07:10 GMT, while the mid-cap FTSE 250 was flat. GSK surged 5.7% after the drugmaker agreed to pay up to $2.2 billion to settle most lawsuits in US state courts claiming that a discontinued version of the heartburn drug Zantac caused cancer.

The broader pharma and biotech index advanced 1.5%, leading sectoral gains.

The oil and gas index added 0.2% following a spike in fuel demand as Hurricane Milton barreled into Florida and concerns over supply disruptions in the Middle East amid rising tensions between Israel and Iran.

On the data front, Britain’s housing market recovered further last month, with house prices, sales and enquiries rising, but pressure on the rental sector intensified as tenant demand continued to outstrip the number of available homes to rent.

Traders now await a key US inflation report later in the day, which could provide more hints on whether the Fed will lower interest rates next month and by how much.

FTSE 100 clocks weekly decline; personal goods shares biggest drag

Among stocks, Liontrust Asset Management fell 1.9% after the asset manager reported a drop in its third-quarter assets under management and advice (AuMA), hurt by weak investor sentiment ahead of the new government’s maiden budget.