London Stocks Nudge Higher as Metal Prices Boost Miners Ahead of Powell's Speech

London stocks saw a modest rise on Friday thanks to climbing metal prices which buoyed the mining sector. Investors are highly anticipating U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium. The FTSE 100 and FTSE 250 indices showed gains amid mixed performance in energy and insurance shares.

London stocks saw a marginal uplift on Friday, driven by rising metal prices that provided a boost to miners. Investors are keenly awaiting U.S. Federal Reserve Chair Jerome Powell's upcoming address at the Jackson Hole symposium.

The blue-chip FTSE 100 index recorded a 0.3% increase, finishing at 8,309.29 but is poised for weekly declines. On the other hand, the mid-cap FTSE 250 climbed 0.1% by 0710 GMT, headed for its second consecutive week of gains. Precious and industrial metal miners reversed their Thursday slump by gaining 0.7% and 0.5% respectively, as gold and base metal prices rose.

Energy shares saw a 0.5% increase following energy regulator Ofgem's decision to raise its price cap on household energy bills by 10% effective Oct. 1. Meanwhile, non-life insurers fell by 0.5%, landing at the bottom of the index. Anticipation surrounds Powell's speech at the Jackson Hole event in Wyoming scheduled for 1400 GMT.

'What has been a calm week could see last-minute volatility with Powell's speech, where he is expected to dampen the jumbo rate cut expectations,' noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank. 'There is no reason for the Fed to start cutting by big chunks in the absence of a severe economic slowdown, market stress, or a crisis.'

Money markets are currently betting on a more than 75% chance of a 25 basis points rate cut at the Fed's September meeting, influenced by dovish remarks from Fed officials and indicators suggesting cooling inflation. Bank of England Governor Andrew Bailey is also lined up to speak at the event at 1900 GMT.

In corporate news, Direct Line dropped 1.6% after the home and motor insurer announced a change in its solvency capital ratio for the year ending 2023.

(With inputs from agencies.)