UK's FTSE 100 rises on commodity boost, Barratt slumps

UK's FTSE 100 gained on Thursday as energy and mining stocks advanced, tracking higher commodity prices, while Barratt Developments tumbled after the homebuilder warned it would build about 20 per cent fewer homes in 2024, reports Reuters.

The blue-chip FTSE 100 rose 0.2 per cent as heavyweight energy stocks advanced 0.6 per cent, tracking higher crude prices.

Miners of industrial and precious metals climbed 1.3 per cent and 0.7 per cent, respectively, as global metal prices appreciated on a softer dollar.

The greenback weakened after data on Wednesday showed US inflation easing, spurring hopes that the Federal Reserve's rate hike saga is nearing an end.

"If I look at the recent set of (UK) data and the US inflation data as well, there is less reason to be in a crisis mindset in terms of inflation and more reason for a steady and moderate approach," said Stefan Koopman, senior macro strategist at Rabobank.

However, the broader homebuilders index fell 2.6 per cent, dragged by Barratt Developments.

Britain's largest homebuilder slipped 4.4 per cent to hit its lowest in nearly seven months after flagging that rising mortgage rates and stubborn inflation could hit demand this fiscal.

Separately, an industry survey showed signs of a slowdown in Britain's housing market in June, and property surveyors expect activity to remain subdued as higher borrowing costs hit new buyer enquiries.