London stocks advance before Brexit budget update

The London stock market rose Wednesday as investors shrugged off jitters over Britain's first budget update since the Brexit vote, and eyed hefty Wall Street gains before Thanksgiving.

Traders will focus on Britain's parliament at 1230 GMT when finance minister Philip Hammond delivers his so-called Autumn Statement against the backdrop of the country's looming exit from the European Union.

Analysts have said Hammond's hopes of easing years of austerity could be hampered by financial uncertainty surrounding Britain's Brexit strategy.

"There is little sense of pre-autumn statement nervousness in UK stocks," said analyst Chris Beauchamp at trading firm IG.

"Overall the drive higher in London is being pushed by the sight of strength in US equities."

"With only a day of trading left until Thanksgiving begins we are likely to see more polishing of portfolios in order to provide additional holiday cheer."

London's top gainers were precious metal groups Fresnillo and Randgold, which jumped 3.1 percent and 2.3 percent respectively, as investors went bargain hunting following recent heavy losses.

"Top of the FTSE 100 this morning are Fresnillo and Randgold; after the precipitate fall in gold and silver prices, these two are now starting to look cheap," noted Beauchamp.

However, London's second-tier FTSE 250 index fell 0.2 percent, as estate agents took a hammering from Hammond's plans to ban certain costs incurred by renters of residential properties

Shares in Countrywide sank five percent and rival Foxtons slumped by ten percent at one stage.

"Shares in estate agents (were) sharply lower... as the government plans to ban upfront fees charged by letting agents," said ETX Capital analyst Neil Wilson.

Eurozone equities meanwhile pushed lower despite upbeat data.

"Over in the eurozone, the DAX and CAC were not particularly happy, with both indices falling around half a percent despite a set of solid flash manufacturing and services PMIs from the region," noted Spreadex analyst Connor Campbell.

- Post-election rally -

New York's Dow Jones Industrial Average finished Tuesday above 19,000 for the first time ahead of this week's US Thanksgiving holiday.

The post-election rally propelled by expectations of pro-growth policies from President-elect Donald Trump.

Most Asian markets rose again Wednesday, tracking the record close on Wall Street, while the dollar held onto its gains against the yen on expectations of a US interest rate rise.

Investors expect Trump's administration will cut taxes, ramp up infrastructure spending and slash regulations, all of which would likely fan inflation -- in turn putting pressure on the Federal Reserve to raise rates.

The Fed is due later Wednesday to release minutes of its most recent policy meeting. While they will be pored over for clues about future rate plans, traders are all but certain the Fed will increase borrowing costs in December.

- Key figures around 1200 GMT -

London - FTSE 100: UP 0.3 percent at 6,837.60 points

Frankfurt - DAX 30: DOWN 0.6 percent at 10,646

Paris - CAC 40: DOWN 0.5 percent at 4,523.70

EURO STOXX 50: DOWN 0.6 at 3,025.40

Hong Kong - Hang Seng: DOWN 0.01 percent at 22,676.69 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,241.14 (close)

Tokyo - Nikkei 225: Closed for holiday

New York - Dow: UP 0.4 percent at 19,023.87 (close)

Euro/dollar: DOWN at $1.0615 from $1.0627 Tuesday

Dollar/yen: DOWN at 110.97 yen from 111.05 yen

Pound/dollar: DOWN at $1.2373 from $1.2420

Oil - West Texas Intermediate: UP 8 cents at $48.11 per barrel

Oil - Brent North Sea: UP 2 cents at $49.14