FTSE 100 rises on mining sector boost

The FTSE 100 rose by 0.7%, staying close to a one-month high achieved on Wednesday. Meanwhile, the FTSE 250 midcap index gained 0.1% after a nearly 4% rise in the previous session.

Industrial metal miners saw a 3.2% increase as most base metal prices rose, driven by short covering following news of the Chinese government considering supportive measures for the real estate market.

Anglo American jumped 5.1% after announcing a 42% surge in first-half copper production.

Supporting the FTSE 100’s gains, a weaker pound persisted, as traders adjusted their expectations for the Bank of England following news of domestic inflation easing beyond expectations.

Analysts see potential economic benefits in interest rates peaking but remain cautious about prolonged peaking. However, traders still anticipate a quarter per cent hike in the lending rate during the Bank of England’s next meeting.

In the construction and materials sector, shares of Volution Group soared 5.2% after the ventilation products supplier projected its full-year profit to surpass current market expectations.

Online trading platform IG Group jumped 3.9% after raising its dividend and announcing a share buyback. The company recorded total revenue of £1 billion ($1.29 billion) for the first time in its history.

Home furnishings retailer Dunelm Group advanced by 2.7% after expressing optimism that its full-year profit would slightly exceed market expectations.

Engineering company Babcock International Group surged 7.5% after reinstating its dividend for the financial year 2024.