London Stocks Surge Amid Earnings and Wage Data

London stocks rose on Thursday, driven by mixed corporate earnings and data showing slower but still high wage growth in Britain. The FTSE 100 and FTSE 250 indexes saw gains, influenced by the performance of energy shares and notable movements in the retail and investment sectors.

On Thursday, London stocks experienced an uptrend, spurred by a mix of corporate earnings and data indicating a slowdown in wage growth, though still high enough to affect inflation.

The FTSE 100 index advanced by 0.8%, potentially marking its best day in two months if gains persist, while the FTSE 250 moved up by 0.2%. Data revealed that average weekly earnings, excluding bonuses, rose by 5.7% over a three-month period ending in May compared to the previous year—a critical factor for the Bank of England in considering potential interest rate cuts next month.

Following the data release, markets increased the probability of a rate cut to 39.1% from 30%. Inflation figures held steady at 2%. Significant performances included Frasers with a 7.6% rise after reporting a 13.1% increase in annual profit, boosting the retail sector by nearly 1%. Conversely, Diploma Plc fell by 3.1% as it maintained its full-year outlook. AJ Bell also gained 2.9% due to a 20% rise in third-quarter assets for its Platform business, marking the investment sector's highest point in over four years with a 1.8% gain.

(With inputs from agencies.)