UK Aerospace and Defence Stocks Rebound Amid Key Economic Data Anticipation

UK's main index saw a lift from aerospace and defense stocks on Tuesday while investors awaited key global economic data that could influence upcoming rate cuts by major central banks. The blue-chip FTSE 100 and mid-cap FTSE 250 indexes were up, with significant gains from Rolls-Royce and Watches of Switzerland Group.

UK's primary stock index received a boost from a rebound in aerospace and defense stocks on Tuesday. Investors prepared for crucial global economic data that might dictate the pace of potential rate reductions from leading central banks this month.

The FTSE 100 index rose by 0.2% at 0715 GMT, despite a slow start to September, while the domestically-oriented mid-cap FTSE 250 gained 0.1%. Rolls-Royce rebounded over 3% following Hong Kong's Cathay Pacific Airways' successful repairs on three of its engines, expecting operation resumption by Saturday.

This recovery lifted the aerospace and defence index by nearly 2%, following its steepest one-day decline since November 2022 on Monday. Watches Of Switzerland Group surged 6% on track to hit its full-year forecast. Ashtead Group rose 3.4% with equipment rental results aligning with expectations, and Hikma Pharmaceuticals increased 2% after an upgrade from Berenberg.

Investors are closely monitoring this month's monetary policy decisions from major central banks like the U.S. Federal Reserve, the European Central Bank, and the Bank of England, with rate cuts anticipated. Influential data includes the U.S. employment figures and PMI and housing statistics in the UK.

(With inputs from agencies.)