(Reuters) -British equities rose on Tuesday, as investor confidence was lifted by upbeat results from Diageo and Smith+Nephew, while expectations of a Bank of England rate cut later this week added further support.
The blue-chip FTSE 100 rose 0.3% as of 0935 GMT, while the domestically focused midcap FTSE 250 gained 0.6%.
Diageo climbed 6.6% and was among the top gainers in the FTSE 100, after the world’s largest spirits maker forecast stable 2026 sales despite tariff impacts and upped its cost-savings target.
The medical equipment and services subindex led sectoral gains, up 11.1%, reaching its highest since November 2021, after Smith+Nephew’s rise in first-half profit and announcement of a new $500 million share buyback.
The British medical products gained the most in the FTSE 100, up nearly 15%.
BP added 2.6% after the oil giant said it would review assets and costs in order to improve profitability, with second-quarter profit beating expectations.
Fresnillo surged 6% after the miner reported positive first-half results. Precious metal miners rose 2.6% as gold prices hovered near a two-week high. [GOL/]
Travis Perkins was the top gainer on the FTSE 250, rising 7.7%, after the British building materials supplier said it expects to deliver full-year adjusted operating profit, including property gains, broadly in line with market expectations.
Spectris rose 1.9% after the British scientific instruments maker agreed to a £41.75-per-share takeover offer from U.S. private equity firm KKR.
Conversely, Domino’s Pizza Group fell 13.6% after it cut its annual core profit forecast.
Data showed on Tuesday that Britain’s services sector reported the biggest drop in new orders since November 2022 and cut jobs at the fastest pace in six months, adding to the Bank of England’s growth concerns.
The BoE is widely expected to cut interest rates to 4% on Thursday from 4.25%, its fifth cut in the current cycle, though some policymakers may vote to keep rates on hold due to inflation climbing above its 2% target.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Vijay Kishore)
