UK stocks rose on Wednesday, underpinned by strength in stocks nearly across the board, while investors braced for the release of U.S. consumer price data for fresh insights into the Federal Reserve's interest rate-cut trajectory.
The resource-heavy FTSE 100 (.FTSE) index was up 0.5%, as of 0820 GMT, while the more domestically-oriented FTSE 250 (.FTMC) index gained 0.8%.
Personal goods (.FTNMX402040) index led sectoral gains, adding 2.8% on a 3.2% rise in Burberry (BRBY.L), while rate-sensitive real estate and homebuilders (.FTNMX402020) stocks climbed 1% and 1.2%, respectively.
Heavyweight oil and gas stocks (.FTNMX601010) jumped 1% after uncertainty over the security of supplies from the Middle East pushed oil prices higher.
Market attention is predominantly fixed on the U.S. consumer price inflation data for March, due later in the day, where a robust figure could potentially push rate-cut bets further back into the year and boost the dollar.
"The CPI data should be taken with a pinch of salt because the Fed has been clear that they need two consecutive number of encouraging inflation data," said Julien Lafargue, chief market strategist at Barclays Private Bank.
"If we were to see weakness or strength in U.S. equities, you could expect the UK market to follow a similar direction... because it will likely have an impact on the currency side".
Investors are also poised to closely monitor the European Central Bank's monetary policy meeting on Thursday, and Britain's GDP figures on Friday.
A survey showed Britain's cost of living crisis is showing signs of easing.
Among individual stocks, IQE (IQE.L) surged 29.0% after the chip components maker forecast fiscal 2024 results to come within market expectations, supported by an improving order book.
Bucking the trend, Speedy Hire (SDY.L) shares fell 4.5% after the company expects to report 2024 results at the lower end of expectations.
