FTSE 100 climbs on stronger UK GDP, on track for worst month since March

FTSE 100 Gains on Robust UK GDP Yet Heads for Biggest Monthly Loss Since March

Market Performance and Economic Highlights

Sept 30 (Reuters) - London's FTSE 100 rose on Wednesday as investors assessed stronger-than-expected GDP data, and was on course for a monthly loss as persistent inflation concerns and rising bond yields dampened sentiment.

The blue-chip FTSE 100 index rose 0.26% to 10,664.93 points by 1018 GMT, headed for its biggest monthly loss since March and its seventh consecutive quarterly gain.

The midcap FTSE 250 climbed 0.74% but was set to dip for the month.

UK Economic Growth and Sector Impact

GDP Data and Economic Resilience

• Britain's economy grew more quickly than previously thought in the second quarter, with output expanding by 0.5% in the April-to-June period, the Office for National Statistics said

• The data showed unexpected resilience in the face of geopolitical upheaval and a global bond market crisis

Sector Performance

Cyclical Stocks and Utilities

• The positive data helped cyclical stocks, with banks being the biggest boost to the index

• The utilities sector rose 2.7% a day after UK PM Andy Burnham made a series of policy announcements for the sector

• Electricity firms National Grid and SSE added about 3% each, while water companies United Utilities and Severn Trent climbed about 2.3% each

Energy and Other Stocks

• Energy stocks dropped around 1%, limiting gains

• Greggs advanced 7.4% after the fast-food chain raised its annual profit outlook as underlying sales growth accelerated in the third quarter

Monetary Policy and Market Outlook

Bank of England and Interest Rates

• Bank of England policymaker Alan Taylor said it was unclear that it would be practical for the BoE to do a single rate hike to tame inflation without fuelling unwarranted market speculation of further increases

• Traders are pricing at least one 25-basis-point rate hike by the BoE this year, according to data compiled by LSEG

Global Market Watch

• Across the Atlantic, US personal consumption expenditures figures will be under scrutiny as investors look for clues to the Federal Reserve's monetary policy path

(Reporting by Anand Gopal in Bengaluru; Editing by Mrigank Dhaniwala)