UK stocks rose on Thursday, with luxury brand Burberry leading gains in the mid-cap index after unveiling a turnaround plan, while investors awaited speeches from finance minister Rachel Reeves and Bank of England (BoE) chief Andrew Bailey.
Burberry surged nearly 19%, marking its largest single-day percentage gain.
The company announced a plan to focus on trench coats and scarves while adopting less ambitious pricing for bags and shoes to win back customers.
The stock topped the FTSE 250 index, which climbed 0.8%.
“Burberry was in need of a reset after a very difficult time for the business, and the market seems to like the strategy update delivered today by new CEO Joshua Schulman,” said AJ Bell Investment Director Russ Mould.
The blue-chip FTSE 100 index also rose, gaining 0.5% as investors looked ahead to Reeves’ first Mansion House speech.
She is expected to outline the role Labour’s government envisions for the financial sector in boosting national prosperity.
Meanwhile, BoE Governor Bailey is set to speak at an event later in the day.
Top BoE official Catherine Mann suggested that the central bank should hold interest rates steady until risks to inflation—such as those posed by Donald Trump’s election as U.S. president—subside.
In contrast, the FTSE 350 precious metals and mining index fell 1.9% to a two-month low, pressured by a decline in gold prices due to the strengthening dollar.
Among other movers, Aviva climbed 4.6% after the insurer reported a 15% increase in general insurance gross written premiums for the first nine months of the year and expressed confidence in meeting group targets.
United Utilities rose 3.4% after the water supplier announced it expects full-year revenue to grow by approximately 10%.