By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved cautiously higher on
Wednesday, as investors waited for the Bank of England's quarterly
inflation report, where the central bank is widely expected to
revamp its forward-guidance framework.
The FTSE 100 index gained 0.2% to 6,688.16, setting it on track
for a sixth straight day of gains.
The main event for investors in London was the upcoming
inflation report, with investors are waiting to see whether
Governor Mark Carney will makeover the interest-rate strategy he
introduced in August. With the unemployment rate dropping faster
than expected, pressure has been mounting on the BOE to explain to
markets what will happen when the U.K.'s joblessness level drops to
the central bank's 7% threshold.
Carney has stressed there is no immediate need for a rate hike,
so any comments on an update to forward guidance will be closely
watched. The inflation report is out at 10:30 a.m. London time, or
5:30 a.m. Eastern Time.
In the corporate space, Wm. Morrison Supermarkets PLC posted the
biggest gain in the FTSE 100, up 2.2%, after Bloomberg reported
that the supermarket chain has contacted private-equity funds to
potentially take the company private. A representative from
Morrisons wasn't immediately available to comment.
Mining firms were also on the rise, tracking metals prices
higher. The sector was boosted by upbeat trade data from China,
which showed imports increased 10% in January. This indicated a
pickup from December and beat analyst expectations. China is a
major user of natural resources, so any signs of a rise in demand
in the country tend to help metals prices and miners.
Shares of Anglo American PLC gained 2.2%, Glencore Xstrata PLC
(GLCNF) rose 1.2%, and Rio Tinto PLC (RIO) added 1.1%.
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