Key facts
- FTSE 100 reached its highest level since September 18.
- UK GDP rose 0.1% in August, against expectations of a 0.1% drop.
- Finance Minister John Healey reaffirmed commitment to fiscal discipline.
- Bank of England Chief Economist Huw Pill suggested future rate increases should not be seen as a prolonged series.
- British Land expects higher half-year profit.
London's blue-chip stocks reached a near one-month high on Thursday, with the FTSE 100 index rising 0.54% to 10,782.98 points by 09:50 GMT. Financials led the gains, supported by stronger-than-expected GDP data and comments from Finance Minister John Healey reaffirming the government's commitment to fiscal discipline. The midcap FTSE 250 index edged 0.07% lower. UK gross domestic product rose 0.1% in August, against expectations of a 0.1% drop. Healey stated that the upcoming budget would aim at bolstering economic resilience, and that he and Prime Minister Andy Burnham were aligned on maintaining fiscal discipline. Bank of England Chief Economist Huw Pill indicated that future interest rate increases should not be interpreted as the start of a prolonged series of hikes. Economists polled by Reuters expect the BoE to raise rates to 4% in November but hold thereafter. Industrial metal miners limited gains, falling 3.1% on weaker copper prices. British Land rose 2.6% after expecting higher half-year profit, while Antofagasta fell 5.8% on lower copper production. Among midcaps, THG surged 18% after lifting its annual profit forecast, while Workspace slipped 5.6% after reporting lower quarterly occupancy.