London stocks rise on financial stocks, corporate earnings

The blue-chip FTSE 100 index was 0.7 per cent higher, while the mid-cap FTSE 250 index gained 0.6 per cent

London stocks edged up for a second session on Wednesday, boosted by financial stocks and corporate earnings, as markets stabilised after a global stocks rout earlier this week.

The blue-chip FTSE 100 index was 0.7 per cent higher, while the mid-cap FTSE 250 index gained 0.6 per cent by 0710 GMT.

Banks climbed 1.4 per cent and were among the top gainers. They added 0.4 per cent in the previous session.

The investment banking and brokerage sector was up 1.7 per cent, lifted by a 4.5 per cent gain in wealth manager Quilter after it beat half-year earnings forecasts and reported stronger net inflows of cash.

Inter-dealer broker TP ICAP soared 10 per cent after a rise in its half-year pre-tax profit, further supporting the sector. The stock topped the FTSE 250 index.

Homebuilders added 1.3 per cent after data showed that housing prices in the country increased by the most in six months in July.

On the other hand, precious metal miners edged down 0.1 per cent, although gold prices held steady after a decline in the earlier session.

Recessionary fears in the US after weak economic data last week had triggered a market meltdown on Monday, sending investors scrambling for safe-haven assets.

However, positive U.S. data and comments from Fed policymakers helped global markets make up most of their losses on Tuesday.

WPP declined 1.3 per cent after the ad group cut its annual revenue growth forecast and agreed to sell its controlling stake in FGS Global to KKR for $775 million.

Bottler Coca-Cola HBC skidded 2.3 per cent despite boosting its annual operating profit and revenue forecast and a higher first-half revenue.