UK's FTSE 100 hits near one-month high after Healey backs fiscal discipline
Oct 15 (Reuters) - London's blue-chip stocks climbed to a near one-month high on Thursday, led by financials, after the Finance Minister reaffirmed the government's commitment to fiscal discipline, while stronger-than-expected GDP data also buoyed sentiment.
The benchmark FTSE 100 index .FTSE rose 0.54% to 10,782.98 points by 09:50 GMT, its highest since September 18, while the midcap FTSE 250 .FTMC edged 0.07% lower.
British finance minister John Healey said this month's budget would aim at bolstering economic resilience, adding that he and Prime Minister Andy Burnham were aligned on maintaining fiscal discipline
UK's benchmark 10-year bond yield declined further following Healey's comments to 5.34%
Heavily weighted banks advanced, with NatWest Group NWG.L rising 2.3% and Standard Chartered STAN.L up more than 1%
UK's gross domestic product rose 0.1% in August, boosted by AI optimism, against expectations of a 0.1% drop
Bank of England Chief Economist Huw Pill said that any future interest rate increase should not be interpreted by investors as the start of a prolonged series of rate hikes
Economists polled by Reuters expect the BoE to raise rates to 4% in November but narrowly expect to hold from there
Consumer staples firms also extended gains, with British American Tobacco BATS.L rising the most, up 2.6%
Limiting the gains were industrial metal miners .FTNMX551020, down 3.1%, on weaker copper prices over concerns of further US Federal Reserve rate hikes
British Land BLND.L rose 2.6% after the commercial property firm said it expects higher half-year profit on office and retail park demand
Antofagasta ANTO.L fell 5.8%, after the Chilean miner's third-quarter copper production declined year-on-year
Among midcaps, e-commerce group THG THG.L surged 18% after lifting annual profit forecast
Flexible office-space provider Workspace WKP.L slipped 5.6% after reporting lower quarterly occupancy, with Jefferies downgrading the stock to "hold" from "buy" citing a tougher sales market