LONDON MARKETS: U.K. Stocks Rise For 2nd Straight Day Ahead Of Key Inflation Data

By Sara Sjolin, MarketWatch Features Dow Jones Newswires

North Korea fears continue to recede, spurring investors to take on more risk

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London-listed stocks rose for a second straight session on Tuesday, as fears of a nuclear war between the U.S. and North Korea continued to recede and as investors looked ahead to a closely watched U.K. inflation report.

The FTSE 100 index climbed 0.2% to 7,369.16, adding to a 0.6% advance from Monday. The positive sentiment on Monday came as U.S. officials over the weekend played down the threat of a military conflict with North Korea, saying they instead were seeking diplomatic solutions (http://nation.foxnews.com/2017/08/13/mattis-and-tillerson-were-holding-pyongyang-account).

Further easing the tensions, North Korean leader Kim Jong Un decided not to launch a threatened missile attack on U.S. territory Guam (http://www.marketwatch.com/story/north-korea-steps-back-from-plan-to-launch-missiles-at-guam-2017-08-14), Pyongyang's state media reported on Tuesday. The leader, however, warned that he could change his mind "if the Yankees persist in their extremely dangerous reckless actions."

Inflation: Investors in London were also focused on U.K. inflation data for July, due at 9:30 a.m. local time, or 4:30 a.m. Eastern Time.

Consensus estimates point to a reading of 2.7%, a slight uptick from the 2.6% printed in June.

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"The development of inflation will be scrutinized because it will be a key factor in the Bank of England's decision of whether or not to hike rates before 2018," analysts at Danske Bank said in a note.

The pound traded at $1.2956 ahead of the data, compared with $1.2964 late Monday in New York.

Stock movers: Shares of Next PLC (NXT.LN) fell 2.8% after Berenberg cut its rating on the high-street retailer to sell from hold.

Shares of Hargreaves Lansdown PLC (HL.LN) rose 0.6% after the financial services company reported a 20% jump in full-year profit (http://www.marketwatch.com/story/hargreaves-lansdown-full-year-profit-jumps-20-2017-08-15).

(END) Dow Jones Newswires

August 15, 2017 03:16 ET (07:16 GMT)