UK Stocks Rise Amid Budget Anticipations and Precious Metal Surge

UK stocks rose due to gains in financials and mining sectors, encouraged by expectations of a Federal Reserve rate cut and a potential tax-heavy budget. Financials and miners showed positive activity, supported by rising gold and copper prices. Investors are keenly awaiting further budget developments.

On Wednesday, UK stocks made notable gains, with financials and mining sectors leading the charge as investors prepared for a potentially tax-heavy budget announcement.

The FTSE 100 climbed by 0.2% as of 10:55 GMT, bolstered by a 3.8% rise in precious metal miners as gold prices reached a near two-week high due to expectations surrounding a potential Federal Reserve rate cut scheduled for next month. Fresnillo increased by 3.9%, and Endeavour Mining rose by 3.6%, riding on the bullish momentum.

Financial stocks also showed resilience, with banks adding 0.5% to their value, driven by hopes of relief from tax hikes in the budget. Investors continue to focus on Finance Minister Rachel Reeves' upcoming fiscal outline, which could significantly impact the market depending on its approach to spending and borrowing.

(With inputs from agencies.)