FTSE 100 index rises to three-week high, central banks minutes in focus

Britains blue-chip index rose for a fifth day to touch the highest level in nearly three weeks following solid performance on Wall Street yesterday, supported by partially seceded geopoltical risks in several regions. Downbeat inflation data hardly affected the headline indexs intraday movements. Market participants awaited the release of FOMCs July meeting minutes and the Bank of Englands August session minutes.

Britains FTSE 100 index rose by 0.48% by 8:49 GMT to 6 773.80 points, having touched a daily high of 6 777.00 points earlier in the session, the highest level in almost three weeks. The headline index rose for a fourth straight day on Monday, having jumped by 0.78%, or 52.17 points, to 6 741.25 points.

Global equities drew support as geopilitical tensions in some regions seceded. On Monday, Kurdish and Iraqi forces retook the Mosul dam – Iraq’s largest, with the help of U.S. air support and now need to clear a 2-kilometer stretch of mines and bombs.

President Barack Obama said yesterday that US forces have carried out 35 air strikes which allowed for the recapturing of the Mosul dam and impaired the Islamic State (IS) offensive, and will continue limited air strikes against the IS rebels.

In the Gaza Strip, a ceasefire which came into effect on Wednesday and was due to expire on Monday was extended for another 24 hours following talks in Cairo, Palestinian and Israeli officials said. The death toll has reached more than 2 000 Palestinians and almost 70 Israelis since Israel began its attacks on Gaza on July 8th, officials said. Both sides had agreed to continue talks for a permanent deal.

Growing tension in Ukraine, however, provided some support. A convoy of civilians being escorted by the Ukranian military from the towns of Khryaschuvate and Novosvitlivka was attacked by “terrorists” armed with guns from Russia on Monday, Ukrainian Col. Andriy Lysenko told CNN. Casualties included women and children.

The civilians were attempting to escape clashes between government forces and pro-Russian separatists but were not moving through an established humanitarian safety corridor when they came under fire in Ukraine’s Luhansk region.

Earlier, Ukraine reported it has destroyed a column of armored vehicles entering Ukraine from Russia, while another column of rocket launchers was also seen entering rebel-controlled territory from Russia.

Inflation data

Data by the U.K. Office for National Statistics showed that inflation slowed in July more than expected, supporting Bank of Englands stance to keep its key interest rate at a record-low level.

Consumer prices rose by an annualized 1.6% in July compared to 1.9% in June, underperforming analysts projections for a minor drop to 1.8%. Month-on-month, consumer inflation decelerated by 0.3% last month, defying projections for a 0.2% decline following Junes 0.2% jump. Core consumer prices were up 1.8% in July from a year earlier, also trailing forecasts to have inched down to 1.9% from the preceding months 2% growth.

Corporate news, top movers

The FTSE 100s top gainers for the day were Barratt Developments Plc, Sports Direct Intl Plc and Imperial Tobacco Group Plc.

Barratt rose by 3.66%, or 13.10 pence, to trade at 371.30 pence at 8:20 GMT, while Sports Direct was up 1.92%, or 13.50 pence, at 716.50 pence.

Imperial Tobacco Group jumped by 1.98%, or 50.00 pence, to 2 576.00 pence by 8:23 GMT. The company announced it expected to report modest adjusted earnings growth as it was pleased with the continued improvement in its sales growth, leaving the outlook for the year unchanged.

Persimmon Plc added 1.20%, or 16.00 pence, to trade at 1 351.00 pence at 8:27 GMT. The company announced that its pretax profit for the first half jumped to £208.9 million from £132.9 million a year earlier on the back of revenue rising by 33% to £1.198 billion from £899.9 million a year ago.

The indexs top losers for the day were BHP Billiton Plc, CRH Plc and Smiths Group Plc.

BHP Billiton fell by 4.00%, or 82.75 pence, to 1 984.25 pence by 8:33 GMT. The company announced plans to create an independent global metals and mining company based on a selection of its high-quality silver, nickel, aluminum, manganese and coal assets.

CRH fell by 1.13%, or 16.50 pence, to 1 439.50 pence by 8:36 GMT, while Smiths Group dropped 0.65% to 1 291.50 pence.