Market Analysis

British equities started positively on Wednesday, boosted by softer-than-expected U.S. labor data, which raised hopes of a September rate cut. Investors were also awaiting the European Central Bank's interest rate decision on Thursday.

The FTSE 100, the UK's benchmark index, rose 0.3% by 0722 GMT following two consecutive sessions of declines. Similarly, the mid-cap FTSE 250 also advanced 0.3% to 20,780.37 points.

Investors welcomed signs of moderation in the U.S. labor market, where data showed job openings fell to their lowest level in more than three years, reinforcing expectations for a Federal Reserve rate cut in September.

Market sentiment was further lifted by expectations that the ECB would announce a 25 basis point cut in interest rates at its upcoming meeting.

Among individual stocks, Paragon Banking led gains on the mid-cap index with a 9.1% increase after reporting its half-year results. WH Smith also saw a 3.2% rise following its quarterly results for the period ending June 1.

On the downside, B&M Holdings was the top decliner on the FTSE 100, dropping 3.2% after releasing its preliminary full-year results.

Paraphrasing text from "Reuters" all rights reserved by the original author.