UK Shares Gain As Investors Assess Company News, Economic Data

FTSE 100 increases 0.4%, FTSE 250 gains 0.6%

Mining stocks lead sectoral gains

Shell rejects report on bid for BP

Moonpig falls after anticipating slower growth

*

Inchcape increases on preserving full-year outlook

June 26 (Reuters) - UK shares edged higher on Thursday, with the midcap index striking a two-week peak as investors absorbed a variety of business outcomes and mulled the outlook for interest rates after data suggested softening customer spending.

The worldwide focused FTSE 100 rose 0.4% by 1100 GMT, while the locally focused midcap index gained 0.6%.

Traders also scrutinised Shell ´ s newest remarks after the oil giant denied reports of ongoing talks to acquire rival BP. Shares in both energy business traded marginally higher in the morning.

Industrial and rare-earth element miners led sectoral gains, tracking higher mineral costs as a weaker dollar made resources more affordable for holders of other currencies.

Fresnillo, Antofagasta, Anglo American and Endeavour Mining each included over 2%.

Car distributor Inchcape acquired 6.2% to top the midcap FTSE index after maintaining fiscal-year outlook through that offset U.S. tariffs and increased competition.

The midcap index has actually surpassed the FTSE 100 this quarter and is on track for its biggest quarterly increase given that late 2020.

Analysts note that domestically focused companies have been fairly insulated from trade uncertainties, while the UK remains among the couple of nations to have signed a trade handle the United States.

On the data front, British retail sales dropped this month and expectations within the market for July likewise degraded, a Confederation of British Industry survey showed.

Recent data reports have indicated a softening economy, and traders are now pricing in a 25 basis point Bank of England rate cut in September, according to LSEG data.

Among other stocks, Associated British Foods rose 1.1% after the food retailer said it would close the UK's largest bioethanol plant by September unless the government offers support - possibly the very first casualty of Britain ´ s tariff offer with the United States.

Greeting card seller Moonpig plunged 9.6% to touch a more than two-month low after anticipating slower profits development and announcing its CEO ´ s departure.

Outsourcing firm Serco rose 2% on expectations of North American market driven first-half growth due to a high volume of defence agreements from last year.

Consultancy Next 15 Group slumped 25% after alerting full-year 2026 revenue would significantly miss market expectations. (Reporting by Twesha Dikshit; Editing by Tasim Zahid)