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London stocks edged higher on Friday, buoyed by rising metals prices that lifted mining shares. Investors awaited a key speech from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which added to market anticipation.
The blue-chip FTSE 100 index (FTSE) saw a 0.3% increase, reaching 8,309.29. Despite this uptick, it was poised to record weekly declines. The mid-cap FTSE 250 (FTMC) gained 0.1% by 0710 GMT, heading towards its second consecutive week of gains.
Mining stocks experienced gains with the precious metals miners (FTNMX551030) and industrial metal miners (FTNMX551020) rising by 0.7% and 0.5%, respectively. This uplift followed an increase in gold and base metal prices.
Energy shares (FTNMX601010) also climbed by 0.5% after the energy regulator Ofgem announced a 10% rise in the price cap on household energy bills starting October 1. This adjustment sets the annual price cap at £1,717 ($2,250.64).
On the other hand, non-life insurers (FTNMX303020) fell by 0.5%, positioning them at the bottom of the index.
Attention was firmly focused on Jerome Powell’s speech at the Jackson Hole symposium, scheduled for 1400 GMT. Analysts, such as Ipek Ozkardeskaya from Swissquote Bank, anticipated that the speech could introduce volatility into the market. Powell’s remarks were expected to temper expectations for significant rate cuts, given that the Fed might avoid substantial reductions without clear signs of severe economic slowdown or crisis.
Money markets had priced in a high likelihood—over 75%—of a 25 basis point cut at the Federal Reserve's September meeting. This outlook was influenced by recent dovish statements from Fed officials and data indicating a cooling inflationary trend in the economy.
Bank of England Governor Andrew Bailey was also slated to speak at the Jackson Hole event, with his address scheduled for 1900 GMT.
