By Khushi Singh and Ankika Biswas
(Reuters) – Britain’s benchmark FTSE 100 share index ended higher on Tuesday, led by gains in travel and mining stocks, while Bunzl (OTC:) hit a record high after the business supplies distributor forecast strong annual profits.
The blue chip rose 0.2% to mark its fourth straight day of gains, while the domestically focused midcap fell 0.1%.
The travel and leisure index hit a four-week high, up 1.3%, while airline Easyjet and Wizz Air rose 6.9% and 5.3% respectively, after European rival Ryanair cut its summer flight prospects upgraded.
Industrial metal miners rose 0.7% as buying on expectations of an upcoming interest rate cut in the United States, a weaker dollar and signs of improving demand in key consumer country China pushed up prices. [MET/L]
Bunzl rose 8% to the top of the FTSE 100 after raising its annual adjusted corporate profit forecast, sending the General Industrials Index to a record high.
On the other hand, the homebuilders index was the biggest sectoral decliner, down 4.2%. Heavyweights from the sector Barratt Developments (LON:), Berkeley Group (OTC:), Persimmon (LON:) and Taylor Wimpey (LON:) fell between 3.1% and 6.6%.
On the data front, UK retailers reported declining sales for the third month in a row in August and are expecting another decline in September, prompting them to scale back their hiring and investment plans.
British retail prices also fell year-on-year this month for the first time since October 2021.
This follows the Bank of England cutting interest rates from a 16-year high earlier this month, with investors expecting at least one more quarter-point cut by the end of the year, according to LSEG data.
Investors also kept an eye on tensions in the Middle East as they waited for a crucial inflation report from the United States, with a dry events calendar at home.
