(Reuters) -London stocks ended marginally higher on Wednesday, as investors assessed the implications of the latest public spending review along with developments on the global trade front and some tame U.S. inflation data.

The benchmark FTSE 100 closed 0.1% higher, sitting about 45 points away from its all-time highs. The mid-cap FTSE 250 also ended 0.2% higher.

Setting out day-to-day budgets for government departments from 2026 to 2029 and investment plans out to 2030, British finance minister Rachel Reeves prioritised spending on health, defence and infrastructure projects to drive economic growth.

An index for aerospace and defence shares closed 0.7% higher.

"For now, however, there is little in this announcement to alarm the MPC, which remains on a cautious path towards cutting interest rates," said Michael Browne, Franklin Templeton Institute.

The Bank of England is expected to hold its main lending rate steady in its decision next week.

Reeves also announced an additional 10 billion pound investment to build thousands more homes in England. Homebuilders and household goods stocks gained 1.5%.

Global stocks initially got a boost after data showed U.S. consumer prices increased marginally in May, adding to hopes that the Federal Reserve could cut interest rates as soon as September.

Markets however, had a muted reaction to U.S. President Donald Trump saying that a U.S.-China trade deal is "done," hours after negotiators from Washington and Beijing agreed on a framework to get a fragile trade truce back on track.

On the downside, industrial metal miners slipped 1% tracking falling copper prices.

Ibstock sank 15.6% after the bricks and concrete producer issued a warning of a hit to its adjusted EBITDA outlook for 2025.

Ricardo shares jumped 27.8% after Canada-based WSP Global said it would acquire the British environmental and engineering consulting firm for about 363.1 million pounds ($489.6 million) including debt.

Quilter gained 5.6% after UBS upgraded the wealth manager's stock to "buy" from "neutral".

(Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru; Editing by Shailesh Kuber, Alexandra Hudson)