The FTSE 100 (INDEXFTSE: UKX) edged higher by 0.45% as of 07:27 GMT, supported by gains in mining stocks and a broader positive mood across European markets.
Germany’s DAX added 0.26% and France’s CAC 40 gained 0.29%, reflecting a cautiously optimistic tone across the continent’s major indices.
Sterling held largely steady against the dollar, trading at $1.3479, up just 0.01%, as investors digested a fresh batch of UK economic data.
UK inflation climbed to 3.1% in the 12 months to August, up from 2.9% in July, driven primarily by a jump in motor fuel costs, according to the Office for National Statistics.
The inflation reading came in line with forecasts, offering little surprise to markets, though the continued upward trend in price pressures remains a key concern for policymakers.
Geopolitical developments added a layer of complexity to market sentiment, with Chinese Foreign Minister Wang Yi calling on both Washington and Tehran to resolve their differences through dialogue.
Wang urged the two sides to “engage in substantive consultations on outstanding issues” and to rebuild a negotiating framework “based on the consensus reached since the Islamabad [memorandum of] understanding,” during a visit by Iranian Foreign Minister Abbas Araghchi to Beijing.
Wang further warned that continued conflict “does not serve the interests of any party,” signaling Beijing’s preference for a diplomatic resolution to the escalating tensions between the U.S. and Iran.
Adding to the already tense situation, Iran’s Revolutionary Guard claimed it shot down a U.S. MQ-9 drone over Qeshm Island, an incident confirmed by Iranian state media, raising fresh concerns about direct military confrontations.
On the legislative front, the U.S. House of Representatives passed a War Powers Resolution on Iran by a vote of 220-204 on Tuesday, marking the third such vote, with seven Republicans breaking ranks to side with Democrats.
The resolution reflects growing unease in Congress over the administration’s military posture toward Tehran, and its passage adds political pressure on the executive branch to seek congressional authorization before taking further action.
Mining stocks provided meaningful support to the FTSE 100 session, with the sector benefiting from ongoing demand signals and commodity market dynamics that have kept investor interest elevated.
