London’s FTSE 100 experienced a modest increase on Wednesday, buoyed by advancements in precious metal miners and energy stocks, as investors kept a close watch on the rising tensions in the Middle East.

The blue-chip FTSE 100 index rose 0.9% to 10,684.33 points by 1010, while the midcap FTSE 250 climbed 0.1%.

• The precious metal mining stocks jumped 2.8% to lead sectoral gains, with technical buying and safe-haven demand ahead of next week’s U.S. Federal Reserve meeting pushing gold prices to a two-week high.
• Energy gained 1.4% as oil prices rose to near six-week highs, driven by increasing concerns that escalating U.S.-Iran hostilities and threats from Yemen’s Iran-backed Houthi militia could disrupt key supply routes.
• British inflation cooled more than anticipated last month as a de-escalation between the U.S. and Iran led to a reduction in fuel prices. However, this relief is likely to be short-lived for new Prime Minister Andy Burnham, who is aiming to alleviate living costs.
• “The economy feels sick and with stock prices high it won’t take much to tip the balance… We have to hope that ​the new Chancellor ​has come in ⁠with a plan. He has some breathing space, but to keep investors from cashing out and leaving the Chancellor with ​even less room to manoeuvre, this will need to ​be credible ⁠and implemented fast,” said Nick Saunders.
• Among stocks, Segro jumps 4.6% to the top of the FTSE 100 after Prologis submits a final takeover proposal for Britain’s warehouse landlord.
• J D Wetherspoon opened a new tab and fell 7.5% after the British pub chain warned that annual earnings would likely miss expectations due to weaker sales and rising costs.