Financials, energy stocks boost FTSE 100 as economy runs hot

London's FTSE 100 index edged higher on Wednesday, lifted by gains in heavyweight financials and energy stocks, while data showed inflation jumped past the Bank of England's target as Britain emerges from a third national lockdown.

London's FTSE 100 index edged higher on Wednesday, lifted by gains in heavyweight financials and energy stocks, while data showed inflation jumped past the Bank of England's target as Britain emerges from a third national lockdown. The blue-chip index rose 0.4% to its highest since February 2020. Life insurers and banks provided the biggest boost to the index.

Oil majors BP and Royal Dutch Shell gained 0.9% and 0.4% respectively, tracking crude prices. The domestically focused mid-cap FTSE 250 index advanced 0.5%.

British inflation unexpectedly jumped above the BoE's 2% target in May when it hit 2.1%, driven in large part by the comparison with prices in May 2020 when the country was in its first tight lockdown, especially for clothing, motor fuel, games and take-away food. Among stocks, EverArc Holdings climbed 8% after the acquisition firm agreed to buy firefighting products and lubricant additives manufacturer Perimeter Solutions in a deal valued at about $2 billion.

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