FTSE 100 Rallies on China's Stimulus Amid Utilities' Midcap Slide

The UK's FTSE 100 rose by 0.3% on Tuesday, driven by Chinese stimulus efforts that boosted mining and luxury retailer shares. However, midcaps fell as utilities like Drax and Dunelm faced significant losses. Bank of England's Governor and British Prime Minister shared optimistic economic views, promising fair financial measures.

The UK's blue-chip FTSE 100 index saw a 0.3% rise on Tuesday, with markets responding positively to China's new stimulus measures aimed at reigniting its economy. Consequently, shares of miners and luxury-focused retailers surged, while the FTSE 250 midcap index fell, led by losses in utilities.

The boost in the FTSE 100 came as Chinese regulators unveiled broad stimulus measures, including rate cuts and stock market reviving moves. Industrial metal miners benefited greatly, with shares of Anglo American, Antofagasta, and Glencore rising between 4% and 7%.

Conversely, the FTSE 250 midcap index saw a 0.4% decline. Drax's 2.6% dip and Smiths Group's 5.2% fall after its North American acquisitions contributed to this downturn. Homeware retailer Dunelm dropped by 6.3% following a major stakeholder's share sale.

(With inputs from agencies.)