FTSE 100 today: Stocks edge higher as miners rally; Beijing presses U.S.-Iran talk

On Wednesday, British stocks experienced a slight gain as rising metal prices bolstered mining shares, amidst a Chinese appeal for de-escalation between the United States and Iran. The FTSE 100 increased by 0.45%, while Germany's DAX rose 0.26% and France's CAC 40 gained 0.29%. The British pound held steady at $1.3479, up 0.01% against the dollar.

UK inflation for the year ending August stood at 3.1%, mirroring expectations, primarily due to a surge in fuel costs, as reported by the Office for National Statistics. James Smith, an economist at ING, stated that the fuel-induced inflation spike was anticipated and that upcoming weekly fuel price data suggests inflation could reach 3.4% next month.

Realistically, the Bank of England must determine if the energy crisis extends beyond the fuel sector, as of now, there are minimal indications of such an occurrence. Food prices softened to 1.1%, while core Consumer Price Index (CPI) remained at 2.6%. Smith opined that an ING base case anticipates price growth to peak near 3.7% early next year before the Bank pauses rate hikes into 2027.

Barratt Redrow led the index's gains with a 6.8% increase after reporting adjusted pre-tax profits of £572.8 million, surpassing the consensus estimate of £540.3 million. However, the company lowered its full-year completions guidance for 2027 due to planning delays. Mining stocks also benefitted, with the sector advancing broadly; Fresnillo led the charge, surging 2.88%.

Antofagasta climbed 2.8%, Anglo American increased 1.86%, and Rio Tinto rose 1.16%, aligning with a metals price surge driven by Middle East supply concerns. Silver climbed 2.23%, copper rose 0.61%, platinum gained 0.74%, and palladium increased 1.35%. China's Foreign Minister Wang Yi called for substantive talks between Washington and Tehran to rebuild a negotiation framework grounded in the consensus reached since the Islamabad (memorandum of) understanding, emphasizing that continued hostilities serve no one's interests.

Iranian Foreign Minister Abbas Araghchi visited Beijing earlier, while a U.S. drone was reported to have been shot down by Iran's Revolutionary Guard over Qeshm Island. The U.S. House of Representatives passed a War Powers Resolution targeting Iran by a 220-204 vote, with seven Republicans breaking ranks, up from four previously.

A Congressional Budget Office estimate highlighted the war's cost at $38 billion and depleting missile-interceptor stockpiles, cited in coverage of the House vote and a separate report. Brent crude prices fell 0.93% to $107.74 per barrel, and WTI crude dipped 1.47% to $104.27 per barrel. Gold futures climbed 0.95% to $4,373.70 per ounce, with spot gold up 0.91% at $4,333.84.

Moonpig maintained its FY27 outlook, with core platform growth counterbalancing a modest decline in the Experiences segment. WH Smith projected an annual pre-tax profit of approximately £75 million, lagging the bottom end of its earlier forecast range, driven by higher promotional expenses and costs. Babcock International reaffirmed its FY27 outlook, citing robust demand across marine, nuclear, and land business segments amid increased defense spending.