FTSE 100 rises as rate hike expectations gather momentum

London's FTSE 100 rose on Wednesday led by financial stocks, as investors await a second consecutive rate hike from the Bank of England on Thursday.

London's FTSE 100 rose on Wednesday led by financial stocks, as investors await a second consecutive rate hike from the Bank of England on Thursday. The blue-chip FTSE 100 index gained 0.5%, while the domestically focused mid-cap index was up 0.7%.

The banking sub-index rose 0.3% as expectations of a 50-basis-point increase in rates from the BoE pushed yields up, with the two-year yields at a level last seen in May 2011 and the five-year yields on British bonds at their highest level since Oct 2018. Copper ticked up on Wednesday as the dollar remained restrained after recently tumbling from a 19-month peak, while gold prices were hovering close to the $1,800 psychological level.

Among individual shares, Vodafone gained 2.9% after the network provider said it was on track to meet its full-year guidance after reporting a 2.7% rise in third-quarter group service revenue, with growth in both Europe and Africa.