UK stocks close higher as weaker sterling boosts export-heavy sectors

By Reuters News

Oct 14 (Reuters) - UK stocks ended higher on Wednesday, supported by a rise in healthcare and consumer staples sectors, which gained on a weaker sterling after data showed US inflation came in hotter than expected.

The blue-chip FTSE 100 index .FTSE closed up 0.7% at 10,724.86 points, while the midcap FTSE 250 .FTMC edged up 0.1%.

  • Stronger-than-expected US inflation reading supported the dollar, lifting risk appetite for sectors benefiting heavily from export revenues

  • Pharma companies AstraZeneca AZN.L and GSK GSK.L rose more than 3.4% each

  • Consumer goods firm Unilever ULVR.L rose 2.5%, while luxury retailer Burberry BRBY.L climbed 3.5%, among the top gainers on FTSE 100

  • Meanwhile, UK Finance Minister John Healey is expected to pay for new initiatives with higher taxes or spending cuts rather than more borrowing, the Financial Times reported on Wednesday, as the Iran war puts additional pressure on Britain's public finances

  • Homebuilders .FTNMX402020 advanced 3.2% after Bank of England's chief economist Huw Pill said he is sceptical of market expectations for four rate hikes over the next year

  • "The BOE's caution is well established, and given the weakness of the labour market, any hike would be framed as insurance," said Geoff YU, senior EMEA markets strategist at BNY

  • Meanwhile, precious metal miners .FTNMX551030 were down 3.5%, tracking weaker gold and silver prices

  • Heavily weighted banks .FTNMX301010 also slipped 0.6%

  • Self-storage firm Big Yellow BYG.L rose 5.4%, after activist investor Ancora called for a strategic review and said it could attract takeover interest

  • IT firm Softcat SCTS.L dropped 10.7% to its lowest since May 29, landing at the bottom of the midcap index after flagging slower growth outlook for 2027

  • Investors now await UK's August GDP figures, due on Thursday

($1 = 0.760 pounds)

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