FTSE 100 Climbs Amid Cautious Trading Ahead of Fed Meeting Minutes

London's FTSE 100 edged higher, with midcap stocks soaring and the pound stabilizing near a one-year high. Traders are cautious ahead of the Federal Reserve’s July meeting minutes. Sectoral gains were led by the chemicals and beverages indices, while pharma, biotech, and oil stocks declined.

London's FTSE 100 ended Wednesday slightly higher as traders exercised caution ahead of the release of the Federal Reserve's July meeting minutes and forthcoming speeches from policymakers. Midcap stocks performed exceptionally well, bolstered by the pound's proximity to a one-year high.

The blue-chip FTSE 100 index rose by 0.1%, recovering from its worst day since August 5. The mid-cap FTSE 250 index saw a 1% increase. The pound stabilized after touching its highest level against the dollar in a year, amid growing expectations of Federal Reserve interest rate cuts.

The chemicals index led the sectoral gains with a 2.2% rise, fueled by a 4.4% surge in Elementis shares, while the beverages index climbed 2%, driven by Diageo's 2% uptick. Conversely, pharma and biotech stocks fell by 0.5%, and oil and gas shares dipped by 0.3% as crude prices declined. Investors are eagerly anticipating Fed Chair Jerome Powell's speech at the Jackson Hole symposium, where a potential rate cut in September could be discussed.

(With inputs from agencies.)