(Reuters) -UK shares rebounded on Wednesday, led by gains in healthcare and mining stocks, after suffering their worst day in nearly five months during the previous session amid fiscal concerns.
The blue-chip FTSE 100 and the domestically focussed midcap index added 0.5% each by 1011 GMT.
British finance minister Rachel Reeves said she would deliver her annual budget on November 26, emphasizing a “tight grip” on public spending to help lower inflation and borrowing costs.
Market scrutiny of the UK has intensified on concerns about fiscal control, with fears that tax rises could slow growth without significantly boosting revenue.
On the day, British 20- and 30-year gilt yields rose to their highest since 1998, pushing past highs set the day before while sterling extended Tuesday’s heavy losses.
Precious metal miners rose, tracking gold prices that surged to a fresh record high. Fresnillo and Hochschild Mining rose 6.1% and 6.5%, respectively. [GOL/]
Industrial miners also advanced with Glencore, Anglo American and Antofagasta adding over 2.5% each.
The healthcare sector rose with heavyweight AstraZeneca gaining 1.9%.
Industrial stocks such as Rolls-Royce, British Airways owner IAG and Babcock also advanced.
Construction equipment rental company Ashtead rose 1.6% on higher first-quarter revenue.
Conversely, non-life insurers fell with Admiral Group and Hiscox down about 1.5% each.
In other news, Watches of Switzerland jumped 7.1%, to top the mid-cap index, after saying it was on track to report fiscal first-half results in line with its expectations on strong U.S. demand.
Hilton Food Group fell 18.8% after flagging higher costs in its seafood business and regulatory curbs at its Foppen unit in Greece.
In a brighter spot for the country’s economy, a survey showed a jump in new business drove Britain’s services sector to its fastest growth in over a year last month as worries about U.S. tariffs eased, though firms still feared potential tax increases at home.
Meanwhile, Bank of England Governor Andrew Bailey is due to answer questions from the House of Commons’ Treasury Committee at 1315 GMT.
U.S. job openings data for July is also expected on the day.
(Reporting by Sukriti Gupta in Bengaluru; Editing by Tasim Zahid)
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