FX.co ★ FTSE 100 Modestly Higher After Bailey's Comments

UK stocks posted slight gains on Tuesday, buoyed by China's announcement of new stimulus measures and comments from Bank of England (BoE) Governor Andrew Bailey, who indicated he does not foresee a return to low interest rates.

Bailey expressed optimism about the downward trajectory of inflation, suggesting that interest rates would gradually decrease as a result.

The FTSE 100 index saw a 0.3 percent increase, closing at 8,281, continuing its 0.4 percent rise from Monday.

Mining companies Anglo American, Antofagasta, and Glencore experienced significant surges of 5-7 percent, driven by copper prices reaching a two-month peak, thanks to China's economic initiatives.

Energy conglomerates BP Plc and Shell also saw gains, with BP rising 1 percent and Shell climbing 0.5 percent, amid increasing oil prices fueled by Middle Eastern geopolitical tensions and a weaker dollar.

On the downside, engineering firm Smiths Group saw a 7.4 percent drop following a fiscal year 2024 report that fell short of expectations.

Building materials provider CRH dipped by 1 percent after announcing a new CEO.

However, Johnson Matthey rallied with a 2.1 percent increase after the chemicals and sustainable technologies company announced the commencement of the second tranche of its share buyback program, initially announced in July, valued at up to 125 million pounds.