The FTSE 100 was higher on Wednesday ahead of the Federal Reserve interest rate decision due later this evening. The Federal Reserve is expected to skip a rate hike for the first time since early 2022.
Softer US inflation data yesterday and the prospect of the Fed holding rates at current levels were helping lift sentiment.
The UK also received a boost from news the UK economy will avoid a recession after growing 0.2%.
“Investors have a checklist of things to worry about, with interest rates, inflation and economic growth front and centre. Today, they get an update on all three,” said Russ Mould, investment director at AJ Bell.
“The UK economy has returned to growth with a 0.2% rise in GDP, showing the country is more resilient than predictions at the start of the year. While in relative terms it is not shooting out the lights, some form of growth is better than nothing given the current uncertain backdrop.”
The FTSE 100 was 0.5% higher at 7,633 at the time of writing.
FTSE 100 movers
For a second day running, Antofagasta was the FTSE 100’s top riser. The copper miner was over 4% higher at the time of writing on Wednesday.
Hopes of further Chinese stimulus were driving commodities and miners higher after the Chinese cut short-term borrowing costs earlier this week.
We highlighted Antofagasta as one of our stocks for June on Monday.
Miners Anglo American, Glencore and Rio Tino were all higher on Wednesday.
Entain was the FTSE 100 biggest faller after raising £600m to fund the acquisition of STS Holding. STS is Poland’s leading gambling operator.