London stocks rise on precious miners boost

The blue-chip FTSE 100 index ended 0.7% higher, after recording its worst day in almost a month on Tuesday

London stocks closed higher on Wednesday on a boost from precious metal miners, while hawkish comments by BoE Chief Economist Huw Pill eased bets on an interest rate cut in August.

The blue-chip FTSE 100 index ended 0.7% higher, after recording its worst day in almost a month on Tuesday.

Also capping gains for the dollar earners was a rise in the pound as Bank of England's Pill focused on strong price pressures in the economy and said the timing of a first interest rate cut was an "open question," addressing a think tank in London.

Investors are now expecting around a 50% probability of an initial rate cut in August, down from 62% before Pill's speech. The yield on Britain's two-year gilt reached a session high of 4.125% after the speech.

On Monday, outgoing Bank of England’s Monetary Policy Committee (MPC) member Jonathan Haskel said he was not yet ready to vote for rate cuts. Catherine Mann, another external MPC member, is due to speak at 1630 GMT.

Investors are also looking to Britain's GDP numbers due on Thursday.

The domestically-focused FTSE 250 index climbed 1.4%, led by SSP Group's 10.4% gain after the restaurant operator stuck to its fiscal year forecasts.

Travel and leisure stocks gained 2%, also boosted by SSP Group.

Precious metal miners gained 3.2% as gold prices stabilised ahead of a crucial U.S. inflation report later this week.

Travis Perkins jumped 7.1% after the construction company named Pete Redfern as its next CEO.

IAG added 3% after Morgan Stanley upgraded the British Airways owner to "Overweight" from "Underweight".