The FTSE 100 rose 0.3% to close at 10,688.47, extended by a rally in mining stocks and a strong earnings report from Barratt Redrow.
Barratt Redrow was the index's top gainer, jumping 10.5% after posting an adjusted pre-tax profit of £572.8 million, beating consensus estimates of £540.3 million. The builder cut its FY27 completions guidance due to planning delays, but the profit beat more than offset the downgrade.
Mining names advanced across the board. Antofagasta climbed 4.1%, while Fresnillo gained 4.03%. The rally followed higher base-metal prices: LME copper rose about 1%, nickel surged 2.2%, aluminium added 0.95%, and zinc edged up 0.10%.
UK headline inflation rose to 3.1% in the 12 months to August, up from 2.9% in July, the Office for National Statistics said. The increase was driven by a jump in motor fuel costs. Food inflation slipped to 1.1%, and core CPI held steady at 2.6%.
Weekly pump-price data points to inflation reaching 3.4% next month. ING expects price growth to peak near 3.7% early next year before staying "on hold into 2027."
On the corporate front, Moonpig kept its FY27 outlook unchanged, saying growth at its core platform would offset a managed decline in Experiences revenue. WH Smith said it expects annual pre-tax profit of about £75 million, at the bottom end of its earlier forecast range, weighed by higher promotional activity and costs. Babcock International reaffirmed its full-year outlook, citing strong demand across its marine, nuclear and land businesses.
Sterling reversed earlier strength to trade lower at $1.3445, down 0.2%.
Across Europe, Germany's DAX gained 0.6% to 25,558.88 and France's CAC 40 added 0.6%.
In commodities, Brent crude fell 1.08% to $107.54 a barrel, while WTI dropped 1.68% to $104.03. Gold futures rose 1.22% to $4,385.67, with spot gold up 1.17% at $4,345.57.
On the diplomatic front, Chinese Foreign Minister Wang Yi met Iranian counterpart Abbas Araghchi in Beijing, as China presses for U.S.-Iran talks ahead of a planned Xi Jinping-Trump summit in Washington scheduled for less than two weeks away. China buys about 90% of Iran's oil exports.
