UK stocks edge higher after fresh record on Wall Street; WPP shines

The British Retail Consortium (BRC) said prices in British shops rose at the slowest annual pace since May 2022 this month, adding to signs of easing inflation pressures ahead of the Bank of England's policy decision this week. Ad group WPP rallied 6.1% to become the biggest percentage gainer on the FTSE 100 after it forecast 2023 operating profit margin at the top end of its previous guidance.

Stock indexes in the UK edged higher on Tuesday after a strong finish on Wall Street overnight, with investors also comforted by largely upbeat earnings and fresh signs of easing domestic price pressures. The exporter-heavy FTSE 100 gained 0.2% by 0816 GMT, while the domestically focussed FTSE 250 index added 0.1%.

New York's S&P 500 closed at a record high on Monday ahead of this week's slew of megacap earnings, economic data and the Federal Reserve's monetary policy meeting. The British Retail Consortium (BRC) said prices in British shops rose at the slowest annual pace since May 2022 this month, adding to signs of easing inflation pressures ahead of the Bank of England's policy decision this week.

Ad group WPP rallied 6.1% to become the biggest percentage gainer on the FTSE 100 after it forecast 2023 operating profit margin at the top end of its previous guidance. SSP Group climbed 2.8% after the operator of food outlets at airports and train stations posted an over 14% sales growth in its first quarter.

Meanwhile, Diageo slipped 3.2% after the world's top spirits maker missed first-half sales estimates, as a sharp decline in Latin America weighed on its overall performance. Deliveroo tumbled 4.4% after Delivery Hero sold about 4.5% stake in the British meal delivery group in an accelerated bookbuild offering.