FTSE 100 Edges Up Amid Mixed Sector Performance

The UK's main stock index, FTSE 100, rose slightly driven by gains in the travel and mining sectors. However, ex-dividend trading affected real estate and beverages. The FTSE 250 dipped, marking its third consecutive decline. Investors are eyeing U.S. economic data for future interest rate clues.

The UK's main stock index edged slightly higher on Thursday, driven by gains in the travel and mining sectors, although ex-dividend shares weighed on real estate and beverages.

The FTSE 100 index rose by 0.4%, while the domestically focused mid-cap FTSE 250 dipped 0.2%, marking its third consecutive session of declines. Media performed the best with a 1.4% rise, closely followed by the travel and leisure sector, which gained 1.1% thanks to a 3.7% rise in Whitbread shares after a stock upgrade from Bernstein.

Precious metal miners climbed 1.1% as gold prices surged on strong expectations of a Federal Reserve interest rate cut in September. Real estate investment trusts led the decline, falling by 1.9% as LondonMetric Property dropped 3.5% due to ex-dividend trading. Spirits maker Diageo also fell 1.2% for the same reason. The British pound strengthened on anticipated UK economic growth and predictions of longer-in-place interest rates by the Bank of England compared to the U.S., although it's vulnerable to changes in monetary policy forecasts.

In individual stocks, CAB Payments rose 4.8% after announcing a partnership with Visa for cross-border payments. Centrica gained 1.5% following an upgrade by Jefferies, and Bunzl added 2.7%, buoyed by a rating upgrade by RBC. The FTSE 100 is on track for its third consecutive weekly rise despite lagging behind Europe's benchmark STOXX 600 and the U.S. S&P 500 this month. Attention now turns to Friday's U.S. Personal Consumption Expenditure data for further cues on the Federal Reserve's likely interest rate cut in September.

(With inputs from agencies.)