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FTSE 100 recovers on energy stocks, corporate updates

written by Bella Palmer
energy-stocks

The blue-chip FTSE 100 index added 0.9%, after it logged its worst day in a week on Tuesday

London's FTSE 100 recovered on Wednesday, supported by gains in energy stocks and positive corporate updates, while investors awaited the U.S. Fed's interest rate decision.

The blue-chip FTSE 100 index added 0.9%, after it logged its worst day in a week on Tuesday.

The mid-cap FTSE 250 index gained 0.4% by 0707 GMT.

Both indexes are set to log monthly gains, with the FTSE 250 eyeing its best this year.

Investors' focus is now set on the Federal Reserve's monetary policy decision due later in the day.

Though the Federal Reserve is widely expected to hold rates, markets are expecting hints for a September cut, after recent data supported the trend of easing inflation in the economy.

In London, energy shares led wider gains with a 1.8% rise, as the index bounced back from Tuesday's losses.

Top players such as BP and Shell added over 1.4% each, after tensions escalated in the Middle East and pushed oil prices up by more than $1 per barrel.

Industrial metal miners also edged up 1.3% as prices of most base metals firmed.

HSBC jumped 2.3% after the bank pledged to buy back $3 billion in shares, and reported steady first-half profit that beat estimates.

It propelled banks 1.5% higher to their highest levels since May 2018.

The BoE's decision also loomed, due on Thursday, with markets pricing in a more than 58% probability of a cut. It could likely be the central bank's first cut since 2020.

Also on the radar is a key jobs report in the U.S. and more quarterly earnings from U.S. big tech companies.

In London, GSK slid 1%, despite a higher annual earnings and sales forecasts and second-quarter results that beat market expectations.

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