UK stocks moved higher on Wednesday after data showed the British economy grew faster than expected during the second quarter, while mining companies were among the leading gainers.
The FTSE 100 rose 0.70% as of 03:18 ET (07:18 GMT). Elsewhere in Europe, Germany’s DAX gained 0.71% and France’s CAC 40 increased 0.32%.
Sterling rose 0.31% against the US dollar to $1.3271.
UK Economy Grows 0.5% in Second Quarter
UK gross domestic product increased 0.5% between April and June, exceeding expectations for growth of 0.4%. The economy had expanded 0.6% during the first quarter.
Net trade provided the largest contribution to expenditure growth, with export volumes rising 2.8%. Services output increased 0.6%, while production declined 0.1%.
Household spending rose 0.3%, while government borrowing increased to 5.2% of GDP from 4.2%.
Among other European economies, Germany recorded second-quarter growth of 0.3%, while France was unchanged.
Middle East Developments Remain in Focus
Developments involving the US and Iran remained in focus after US President Donald Trump said the war with Iran would end “very soon”, without providing further details. He also repeated his position that Iran would not obtain a nuclear weapon.
Iran’s Revolutionary Guards issued an open letter calling on US voters to change the administration ahead of the midterm elections.
University of Tehran researcher Mohammad Eslami said the US blockade of the Strait of Hormuz was reducing Iran’s oil revenue.
Trump also denied reports that the US could ease sanctions on Iran. Iranian President Masoud Pezeshkian said Washington and Israel were attempting to create internal divisions in Iran after failing to achieve their objectives militarily.
In the UK, counterterrorism police said no explosives had been found in vans near RAF Fairford following the arrest of five people over a suspected plot. Petrol was found in the vehicles, and the five people were subsequently released on bail.
Mining Shares Lead FTSE 100 Gains
Mining companies were among the strongest performers on the FTSE 100.
Rio Tinto (LSE:RIO) gained 2.1%, while Antofagasta (LSE:ANTO) rose 2.7% and Fresnillo (LSE:FRES) increased 1.4%.
Anglo American (LSE:AAL) advanced 1.8%, while Glencore (LSE:GLEN) gained 1.0%. InterContinental Hotels Group (LSE:IHG) rose 2.3%.
Gold Rises as Oil Prices Decline
Brent crude futures fell 0.88% to $95.31 a barrel, while US West Texas Intermediate crude declined 0.69% to $88.75.
Gold futures increased 1.14% to $4,227.09 an ounce, while spot gold rose 0.32% to $4,195.15.
UK Corporate Updates
Saga (LSE:SAGA) reported that underlying profit before tax nearly doubled during the first half of 2026 and raised its profit and cash-flow outlook.
Greggs (LSE:GRG) raised its 2026 outlook following higher summer sales and proposed a restructuring of its manufacturing operations that could result in four site closures and around 740 redundancies.
Pinewood Technologies (LSE:PINE) reported a wider first-half loss as spending on its North American expansion and acquisition-related costs increased. The company maintained its outlook for the 2026 financial year.
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