British midcaps hit record high ahead of factory activity data

UK shares rose on Wednesday, with the mid-cap index hitting a record high, on the back of gains in industrial and consumer discretionary stocks, while investors awaited factory activity data to gauge the pace of economic recovery.

UK shares rose on Wednesday, with the mid-cap index hitting a record high, on the back of gains in industrial and consumer discretionary stocks, while investors awaited factory activity data to gauge the pace of economic recovery. The blue-chip FTSE 100 index climbed 0.8%, with spirits maker Diageo Plc and banking shares gaining 1.7% and 1%, respectively.

Industrial and aero stocks added 0.7% and 0.3%, respectively. The domestically focussed mid-cap index advanced 0.4%. Tyman Plc jumped 4.8% to the top of the index after Berenberg upgraded the construction materials supplier's stock to "buy" from "hold".

Figures from mortgage lenders Nationwide showed British house prices rose by 2.1% month-on-month in August after a subdued 0.6% increase in July, despite the phasing-out of a tax break for purchases in England and Northern Ireland. All eyes are now on the IHS Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) data due at 0830 GMT.

Among other stocks, WH Smith slipped 5.5%, after the retailer warned profitability for the year ending August 2022 would be at the lower end of market expectations, due to charges and uncertainty in travel recovery.