FTSE 100 gains as Reckitt, Lloyds rise on upbeat forecasts

The blue-chip FTSE 100 index was up 0.3% at 0717 GMT, while the domestically focussed midcap 250 index was flat. Reckitt Benckiser climbed 5.9% as the maker of Dettol and Lysol cleaning products raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations.

UK's blue-chip index firmed near one-month highs on Wednesday, as strong forecasts from heavyweights Reckitt Benckiser and Lloyds Banking Group overshadowed concerns over a slowing economy and soaring inflation. The blue-chip FTSE 100 index was up 0.3% at 0717 GMT, while the domestically focussed midcap 250 index was flat.

Reckitt Benckiser climbed 5.9% as the maker of Dettol and Lysol cleaning products raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations. Lloyds Banking Group rose 4.3% after it raised its dividend and full-year profitability forecast as rising interest rates outpace modest growth in provisions for troubled loans.

On the other hand, UK-listed shares of Rio Tinto slipped 3.7% after the global miner reported a 29% drop in first-half profit and more than halved its dividend, hurt by weaker iron ore prices, higher costs and labor shortages. Data released earlier showed shops and supermarkets in Britain increased prices by 4.4% in the 12 months to July, the largest rise since these records began in 2005, reflecting a jump in food and transport costs.