Key facts
- The FTSE 100 index traded largely flat, edging up 0.04% to 10,848.75 points.
- The FTSE 250 index climbed 0.5% to 24,916.12 points, nearing a record high.
- Balfour Beatty shares surged 9.2% to a record high after raising its annual profit forecast.
- European shares edged higher, with the STOXX 600 up 0.2%, as oil prices fell.
- U.S. inflation data came in line with expectations, easing concerns about further Federal Reserve rate hikes.
- UK GDP data is expected to show stalled growth in June.
London's FTSE 100 index traded largely flat on Thursday, with investors adopting a cautious stance ahead of crucial U.S. inflation data. The midcap FTSE 250 index, however, outperformed, climbing 0.5% and nearing a record high.
Global stock markets showed little movement as investors awaited U.S. consumer price index data for July, which was expected to indicate a moderate increase, potentially tempering expectations for further interest rate hikes by the Federal Reserve. Sentiment in Europe remained subdued due to stalled U.S.-Iran peace efforts and continued disruption in the Strait of Hormuz.
Oil prices declined as forecasters cut their outlook for global demand this year. The European energy sector was little changed, while travel and leisure stocks gained 0.6% and the banking sector rose 0.9%.
Boosting the midcap index, shares of Balfour Beatty surged 9.2% to a record high after the British construction group elevated its annual operating profit forecast, citing robust demand for infrastructure projects. Mining companies Anglo American and Rio Tinto also saw gains of over 1% each.
Maersk rose 8.3% after the Danish shipping group smashed profit forecasts and raised its full-year earnings guidance for a second time this year.