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FTSE 100 Edges Higher As Recession Worries Ebb
(RTTNews) - U.K. stocks rose on Wednesday to hover near three-week high, with oil and mining stocks leading the surge.
The upside remained capped after official data showed consumer price inflation accelerated more-than-expected to 9.4 percent in June on rising motor fuel and food prices, raising prospects of a 50-basis point rate hike by the Bank of England at its August meeting. Inflation was forecast to rise to 9.3 percent from 9.1 percent in May.
Factory gate inflation came in at 16.5 percent in June, faster than the 15.8 percent increase in May and economists' forecast of 16.0 percent.
The benchmark FTSE 100 was up 29 points, or 0.4 percent, at 7,325 after closing 1 percent higher the previous day.
Commodity-related stocks climbed as recession worries ebbed. Miners Anglo American and Glencore rallied 1-2 percent, while oil & gas firm BP Plc advanced 1.7 percent and Shell added 1 percent.
Advertising firm WPP jumped 2.4 percent after U.S. rival Omnicom Group reported second-quarter earnings that beat analysts' forecasts. Postal service and courier company Royal Mail tumbled 4.7 percent after its fiscal first-quarter group revenue fell 11.5 percent year-on-year.
Morses Club shares plunged 43 percent after the subprime lender said it was looking at a potential program to settle customer redress claims.
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