UK stocks rise as bond rally lifts risk sentiment

UK Stocks Rise as Bond Rally and Commodities Boost Market Sentiment

Market Overview and Key Drivers

Sept 3 (Reuters) - Britain's main stock indexes recovered on Thursday as a rally in global bonds ahead of a U.S. jobs report lifted risk sentiment, while firmer commodity prices provided additional support. 

The blue-chip FTSE 100 index closed 0.7% higher at 10,831.52 points, and the midcap FTSE 250 also gained 0.7%, rebounding from a near one-month low.

Bond Market Movements

• Britain's 10-year gilt yields eased 9.5 basis points from Wednesday's 18-year high, tracking a rally in global bonds and stocks ahead of U.S. nonfarm payrolls data on Friday.

Sector Performance

Services and Banking

• The services sector in the UK grew for the second month in a row in August and confidence rose, a survey showed.

• Rate-sensitive banks rose 1.4%.

Commodities and Healthcare

• Precious metal miners led sectoral gains, rising 3.4%, tracking gains in gold and silver prices.

• Healthcare stocks advanced 0.6%, with AstraZeneca up 1.4%.

Corporate Highlights

Advertising and Consumer Goods

• Advertising firm WPP rose 5.6% after a media report said its European competitor Publicis had won the race to handle PepsiCo's media account. That boosted WPP's chances of retaining Coca-Cola outside the United States.

• Reuters reported Haleon secured better shelf space at major U.S. retailers Walmart and Target to boost its visibility. Still, shares in the Sensodyne toothpaste maker were down 2.3%.

Telecommunications and Food Industry

• Vodafone rose 2.4%. The mobile operator launched its own TV service in Britain and a premium mobile offer with faster speeds.

• Hilton Food Group jumped 12.2% to hit a one-year high and was among the top gainers in the midcap index after raising its annual profit forecast.

Reporting Credits

(Reporting by Anand Gopal in Bengaluru; Editing by Ronojoy Mazumdar and Andrew Heavens)