FTSE 100 edges higher on economic data, monetary policy

The blue-chip FTSE 100 index was 0.1 per cent higher, having snapped a four-day winning streak with marginal losses on Wednesday

The UK's main stock index edged higher on Thursday, defying the weak trend across some major global markets as Nvidia failed to meet investors' high expectations, while the focus shifted back to economic data and monetary policy outlook.

The blue-chip FTSE 100 index was 0.1 per cent higher as of 0714 GMT, having snapped a four-day winning streak with marginal losses on Wednesday. The domestically-focused mid-cap FTSE 250 slipped 0.1 per cent.

UK markets, which have minimal exposure to technology stocks, somewhat withstood the pullback in artificial intelligence-related stocks that weighed on U.S. and Asian equity markets after chip giant Nvidia's current-quarter forecasts failed to live up to a recent history of beating Wall Street's targets.

Construction and material shares led sectoral gains in the UK, while beverages was the worst hit as spirits group Diageo declined almost 2 per cent on trading ex-dividend.

Meanwhile, Centrica gained 1.2 per cent after Jefferies upgraded the British energy supplier's stock to "buy" from "hold". Bunzl added 1 per cent after RBC raised the rating on the business supplies distributor's stock to "sector perform" from "underperform".

The FTSE 100 is on track for its third consecutive weekly gain and a slight retreat for the month, lagging behind both Europe's benchmark STOXX 600 and the U.S. S&P 500 in August.

With big-ticket earnings in the rear-view mirror, all eyes are now on labour market and inflation data out of the U.S. and euro zone, with investors on the lookout for any clues on the quantum of the Federal Reserve's likely interest rate cut in September.