London stocks gain amid mixed corporate earnings

The blue-chip FTSE 100 index was 0.8% higher, while the mid-cap FTSE 250 index added 0.2%

London stocks gained on Thursday amid a raft of mixed corporate earnings, while investors parsed data that showed growth in British wages slowed but remained at levels that would be too high for the Bank of England to keep inflation at its 2% target.

The blue-chip FTSE 100 index was 0.8% higher, set for its best day in two months, if gains hold. The mid-cap FTSE 250 index added 0.2%, as of 0709 GMT.

Data showed that average weekly earnings excluding bonuses - a key gauge of inflation pressure for the Bank of England as it considers whether to reduce interest rates next month - rose by 5.7% in a three-month period ended May, compared with a year earlier.

Following the release of the data, money markets raised the odds of an interest rate reduction next month at 39.1% from 30%. Consumer prices index (CPI) numbers on Wednesday showed inflation held at 2%, against expectations of 1.9% in June.

Heavyweight energy shares tracked oil prices higher to be among the top gainers in London, with a 1.4% jump.

On earnings front, Frasers climbed 7.6% to top the FTSE 100 after the British sportswear and apparel retailer reported a 13.1% increase in annual profit and forecast more growth in its new financial year.

It boosted the retail sector, which added around 1%.

Diploma Plc was the top loser on FTSE 100 with a 3.1% drop after the technical products and services provider kept its full-year outlook unchanged.

Dunelm Group climbed 7.1% to the top of the FTSE 250 after the homewares retailer forecast its annual profit to be marginally higher than market consensus.

AJ Bell added 2.9%, after the investment platform reported a 20% increase in its third-quarter assets under administration for its Platform business.