UK's FTSE 100 climbs on lower yields, pharma leads gains

The dollar paused its rally, while yields on the British 10-year benchmark note slipped, tracking its U.S. peer. Meanwhile, industry data showed British retailers reported lacklustre sales around Christmas, which may add to concerns that the economy has tipped into a mild recession.

Britain's FTSE 100 rose on Tuesday, following an overnight rally on Wall Street as the fall in U.S. Treasury yields reaffirmed interest rate cut bets, while pharma and biotech shares led gains.

The blue-chip FTSE 100 added 0.2% by 0819 GMT, while the midcap index FTSE 250 edged 0.2% lower. Oil and gas shares rose 0.4% as oil prices steadied after sliding nearly 3% in the previous session.

Pharma and biotech shares climbed 1.0% leading sectoral gains. The dollar paused its rally, while yields on the British 10-year benchmark note slipped, tracking its U.S. peer.

Meanwhile, industry data showed British retailers reported lacklustre sales around Christmas, which may add to concerns that the economy has tipped into a mild recession. Retailers index was down 0.5%.

In corporate news, discount chain B&M shares dropped 2.0%, leading declines on FTSE 100 as underlying sales growth in main UK business slows.