London Stocks Rise Amid Improved Corporate Earnings

London stocks edged higher for a second consecutive session, buoyed by financial stocks and improved corporate earnings. The FTSE 100 rose 0.7%, with banks and the investment banking sector among top gainers. Recession fears in the U.S. briefly rattled markets, but positive data helped them rebound.

London stocks edged higher for the second consecutive session on Wednesday, driven by strength in financial stocks and positive corporate earnings.

The blue-chip FTSE 100 index rose by 0.7%, while the FTSE 250 increased by 0.6% as of 0710 GMT. Banks led the rally with a 1.4% gain, following a 0.4% rise the previous session.

The investment banking and brokerage sector climbed 1.7%, fueled by a 4.5% increase in wealth manager Quilter after it exceeded half-year earnings expectations. TP ICAP surged 10% on strong half-year pre-tax profits, topping the FTSE 250 index.

Homebuilders saw a 1.3% gain after July's housing price data showed the highest monthly increase in six months. Meanwhile, precious metal miners slipped 0.1%, though gold prices remained stable after a previous decline.

Initial recession fears from weak U.S. economic data caused a market meltdown earlier in the week. However, positive U.S. data and reassurances from Federal Reserve policymakers helped global markets recover most of their losses by Tuesday.

WPP dropped 1.3% following a downward revision of its annual revenue forecast and the sale of its controlling stake in FGS Global to KKR for $775 million. Coca-Cola HBC fell 2.3% despite raising its annual profit and revenue forecast.

(With inputs from agencies.)