FX.co ★ UK Stocks Slightly Higher Ahead Spending Review

The FTSE 100 traded marginally higher on Wednesday as attention turned to Chancellor Rachel Reeves' upcoming spending review, scheduled to follow Prime Minister's Questions at approximately 12:30 pm. This review is set to present the government's long-term financial strategy for the upcoming decade, emphasizing key areas such as infrastructure, healthcare, education, and housing. Reeves aims to justify her fiscal policies while shifting the focus towards investment-driven economic growth. The financial sector saw notable gains, buoyed by optimism over advancements in US-China trade discussions. Companies with significant exposure to the Chinese market, including Prudential, Standard Chartered, and HSBC, experienced an uptick, whereas mining firms such as Glencore and Antofagasta benefited from rising metal prices. Defence companies like Rolls-Royce and Babcock saw increases in anticipation of forthcoming public investments. Meanwhile, BT's shares rose by 1.5% after being added to JPMorgan's focus list, attributed to promising forthcoming catalysts. In other developments, BT is reportedly considering the acquisition of TalkTalk due to customer attrition at its Openreach division.