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On Wednesday, the FTSE 100 in London closed higher, but mid-cap stocks drew more attention ahead of the upcoming Federal Open Market Committee minutes.
The FTSE 100 index rose by 10.11 points, or 0.1%, to finish at 8,283.43. The FTSE 250 climbed 201.04 points, or 1.0%, ending at 21,187.19, while the AIM All-Share increased by 2.77 points, or 0.4%, to 776.81.
In the Cboe UK indices, the Cboe UK 100 was up 0.2% at 827.64, the Cboe UK 250 gained 0.6% to close at 18,541.01, and the Cboe Small Companies edged up 0.2% to 16,902.68.
European markets also showed gains, with the CAC 40 in Paris and the DAX 40 in Frankfurt both rising by 0.5%.
In New York, the DJIA remained relatively unchanged, while the S&P 500 and Nasdaq Composite posted modest increases of 0.25% and 0.3%, respectively.
The FTSE 100 initially reacted to a weak start but recovered some of Tuesday’s losses. The early trading mood was affected by new data revealing a significant rise in government borrowing for the previous month. The Office for National Statistics reported public sector net borrowing at £3.1 billion, substantially higher than the anticipated £1.1 billion and marking the highest July borrowing since 2021.
Following this, there were concerns about potential tax increases or additional borrowing to address public finances, as noted by analysts.
Market focus has shifted to the forthcoming minutes from the July FOMC meeting, which may offer insights into the Federal Reserve's stance on interest rates. At its last meeting, the FOMC opted to maintain the federal funds rate range at its highest level in over two decades, with expectations that a rate cut might be considered if economic conditions warrant.
In the UK, JD Sports Fashion led the FTSE 100 with a 4.0% rise, while Mobico, formerly National Express, surged 16% following positive financial updates. Costain saw a 6.8% increase due to strong order book performance, whereas Watkin Jones experienced a sharp 33% decline amid profit warnings related to market uncertainties. Rosslyn Data Technologies saw a remarkable 60% gain after securing a major contract.
In commodities, Brent oil was quoted at $77.29 per barrel, down slightly from Tuesday, while gold was priced at $2,507.72 an ounce.
