- FTSE 100 up 0.9%, FTSE 250 adds 0.4%
- Energy shares lead gains, oil up by over $1 per barrel
- HSBC plans $3 bln share buyback, shares rise
- U.S. Fed rate decision in focus
July 31 (Reuters) - London's FTSE 100 recovered on Wednesday, supported by gains in energy stocks and positive corporate updates, while investors eagerly awaited the U.S. Federal Reserve's interest rate decision.
The blue-chip FTSE 100 index gained 0.9%, after it logged its worst day in a week on Tuesday.
The mid-cap FTSE 250 index added 0.4% by 0707 GMT.
Both indexes are set to log monthly gains, with the FTSE 250 eyeing its best this year.
Investors' focus is now trained on the Fed's monetary policy decision due later in the day, which could influence the outlook on rate cuts globally.
Though the Fed is widely expected to hold rates, markets are anticipating hints for a September cut, after recent data supported the trend of cooling inflation in the eocnomy.
In London, energy shares led broader gains with a 1.8% rise, as the index rebounded from Tuesday's losses.
Top players like BP and Shell gained more than 1.4% each, after the killing of Hamas' leader ratcheted up tensions in the Middle East and pushed oil prices higher by more than $1 per barrel.
Industrial metal miners also inched 1.3% higher as prices of most base metals firmed.
HSBC climbed 2.3% after the bank pledged to buy back $3 billion in shares, and reported stable first-half profit that beat estimates.
It propelled banks 1.5% higher to their highest levels since May 2018.
The Bank of England's decision also loomed, due on Thursday, with markets pricing in a more-than-58% chance of a cut. It could likely be the central bank's first cut since 2020. 0#BOEWATCH
Also on the radar is a crucial jobs report in the U.S. and more quarterly earnings from U.S. big tech companies.
In London, GSK slipped 1%, despite a higher annual earnings and sales forecasts and second-quarter results that beat market expectations.
Reporting by Purvi Agarwal in Bengaluru
Source: Reuters