UK stocks recorded moderate gains on Thursday, despite the energy sector experiencing pressure from declining oil prices, which counterbalanced the positive sentiment stemming from new stimulus measures in China.
As we approach the Autumn Budget in October, the latest British Retail Consortium (BRC) Consumer Sentiment Monitor indicates a drop in consumer confidence for September. This decline is attributed to growing concerns about the economy and personal finances. The benchmark FTSE 100 index increased by 31 points, or 0.4 percent, reaching 8,299 after a 0.2 percent decline on Wednesday.
The British pound appreciated against the dollar following comments from Bank of England (BoE) Governor Andrew Bailey, suggesting that interest rates will decrease gradually.
Mining companies such as Anglo American, Antofagasta, and Glencore saw significant gains of 4-5 percent after China's politburo pledged robust policy support to achieve this year's economic growth target of approximately 5 percent.
Conversely, energy stocks were weak, with BP plc dropping 4.1 percent and Shell falling 3.5 percent as oil prices continued to decline for a second consecutive day. This followed reports that Saudi Arabia would be increasing output in December.
Specialist media platform Future plc saw a 2.7 percent decrease after reaffirming its full-year guidance.
