London Stocks Inch Higher Amid Investor Caution Before U.S. Inflation Report

London stocks saw a slight increase on Wednesday, led by gains in precious and base metal miners. Investors remained cautious ahead of a key U.S. inflation report. The blue-chip FTSE 100 rose 0.1%, while the mid-cap FTSE 250 added 0.2%. Industrial support services stocks declined, with Rentokil Initial plunging 17.8% after job cuts. Britain's economic growth data showed stagnation, and investors awaited U.S. CPI numbers for insights on future rate cuts by the Federal Reserve.

In a tentative trading session on Wednesday, London stocks edged higher, buoyed by gains in precious and base metal miners, while market participants treaded cautiously ahead of a significant U.S. inflation report. As of 0712 GMT, the blue-chip FTSE 100 index rose by 0.1%, and the mid-cap FTSE 250 increased by 0.2%.

Heavyweight miners were the biggest movers, with industrial and precious metal miners climbing 1.8% and 1.4%, respectively. The rise was attributed to a softer dollar and optimism around potential rate cuts, which bolstered copper and gold prices. Energy shares also saw a 1.2% uptick, following a surge in oil prices due to concerns over Hurricane Francine's impact on U.S. production.

Conversely, industrial support services stocks took a hit, led by a 17.8% drop in Rentokil Initial after the company announced job cuts to mitigate cost overruns. Economic data showed Britain's output grew less than anticipated in July, signaling stagnation. Investors were keenly awaiting U.S. CPI figures for clues on the Federal Reserve's rate-cut stance. WH Smith shares soared by 12% after reporting higher annual revenue and unveiling a £50 million buyback plan.

(With inputs from agencies.)