UK Stocks Surge Amid China's Economic Stimulus

UK stocks experienced a rise on Tuesday, tracking global gains following China's fresh stimulus measures. The FTSE 100 and FTSE 250 indices climbed, supported by a boost in mining and luxury retail stocks. Statements from the Bank of England and corporate actions also influenced market movements.

UK stocks rose on Tuesday, mirroring global market trends, as China's introduction of fresh stimulus measures positively impacted miners and luxury retailers.

At 0715 GMT, the blue-chip FTSE 100 saw an increase of 0.5%, while the FTSE 250 midcap index edged up 0.3%. China's regulators announced broad measures including rate cuts, aiming to revitalize the country's sluggish economy and stock market.

Global equities appreciated following this announcement, easing concerns over China's economic slowdown. London-listed industrial miners surged 5% to a near one-month peak, driven by rising metal prices linked to anticipated higher demand.

Significant gains were observed in shares of miners such as Anglo American, Antofagasta, and Glencore, alongside a 3.7% rise in Burberry stocks, supported by hopes of renewed demand in China.

In other news, Bank of England Governor Andrew Bailey expressed optimism about declining inflation and expected gradual reductions in interest rates. Conversely, Smiths Group's shares fell 6.3% after announcing North American acquisitions and a slight profit miss. Dunelm's stock dropped 6% following the sale of a 5% stake by top shareholder Will Adderley.

Prime Minister Keir Starmer's speech at the Labour Party annual conference also captured investor attention, particularly after Finance Minister Rachel Reeves ruled out a return to economic austerity.

(With inputs from agencies.)