(Reuters) -The UK’s FTSE 100 rose to a two-month high on Tuesday, as Diploma shares touched a record high after an upbeat forecast, while a host of other positive earnings reports also added to the buoyant sentiment.
The blue-chip FTSE 100 rose 0.6% by 1053 GMT, trading at its strongest level since March 7.
Diploma jumped about 18% to an all-time high after the technical products and service distributor raised its full-year organic revenue growth forecast, while its first-half sales jumped on strong demand for its cables and wires.
Engineering company Smiths Group gained 4.7% after it said annual organic revenue growth would reach the top end of its 6%-8% forecast range.
The FTSE 100 was rising for a fourth day as global markets regained stability after a surprise U.S. credit rating downgrade by Moody’s unsettled investors on Monday.
Britain on Monday reached a wide-ranging deal with the EU including a security and defence pact, fewer restrictions on British food exporters and visitors, and a contentious new fishing agreement.
Meanwhile, Bank of England Chief Economist Huw Pill said the central bank’s pace of interest rate cuts had been too fast given still strong wage pressures on inflation.
The BoE cut interest rates by a quarter point to 4.25% in a three-way split vote earlier this month, where Pill voted to keep rates steady.
Britain’s inflation data, which is set to be released on Wednesday, is likely to show consumer prices increased sharply in April, driven in part by higher energy bills.
The midcap index gained 0.7% to trade at a three-month high.
Greggs topped the midcap index after the fast food chain reported sales growth picking up as the year progressed, helped by better trading conditions. Its shares climbed 7.2%.
Meat producer Cranswick advanced 5.1% after reporting annual pretax profit ahead of market expectations.
SSP Group rose 5.4% after the food outlets operator launched a cost-cutting drive and a turnaround plan to revive profitability in continental Europe, its largest market.
(Reporting by Ragini Mathur and Twesha Dikshit in Bengaluru; Editing by Leroy Leo)
