London stocks rise as metal miners shine; M&S slips

Industrial metal miners gained the most among sectors, rising 1.5% to a four-week high, as prices of base metals rose on a softer dollar and Chinese government support for the yuan. Shares of Tesco rose 0.8% after Britain's biggest retailer upgraded its profit outlook for the second time in four months.

UK's main stock indexes climbed on Thursday, underpinned by industrial metal miners tracking commodity prices higher, while investors awaited U.S. inflation data that could provide more clues on the Federal Reserve's interest rate trajectory.

The blue-chip FTSE 100 was up 0.5% and the midcap FTSE 250 index climbed 0.4%. Industrial metal miners gained the most among sectors, rising 1.5% to a four-week high, as prices of base metals rose on a softer dollar and Chinese government support for the yuan.

Shares of Tesco rose 0.8% after Britain's biggest retailer upgraded its profit outlook for the second time in four months. Tesco reported a better-than-expected rise in underlying UK sales for the key Christmas trading period. Marks & Spencer slipped 5% to the bottom of the FTSE 100 and was headed for its worst day in nine months, even as the British retailer reported a better-than-expected jump in like-for-like sales over the Christmas trading period.

Traders said uncertain outlook from the retailer sparked profit taking after a strong run. "On the outlook, M&S was more cautious citing uncertainty around economic growth, as well as higher than anticipated wage and business rate costs, and this uncertainty has prompted further weakness in the share price," said Michael Hewson, chief market analyst at CMC Markets UK.

WPP fell 1.4% as it is considering the sale of its 40% stake in market research firm Kantar, which could be valued at up to $8 billion including debt. Investors' focus is also on the U.S. consumer price index data for December, due at 1330 GMT, to gauge how soon the Fed will start its monetary policy easing, which could influence interest rates globally.

Meanwhile, the U.S. securities regulator on Wednesday approved the first U.S.-listed exchange-traded funds (ETFs) to track bitcoin, in a watershed for the world's largest cryptocurrency and the broader crypto industry.