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FTSE 100 up 0.2%, FTSE 250 gains 0.3%

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Defence and healthcare stocks lead gains

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Beazley tumbles after lowering annual premium growth

forecast

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Persimmon eyes 2026 sales growth but margin concerns weigh

on

shares

Aug 13 (Reuters) - London shares rallied on Wednesday,

with the blue-chip FTSE 100 index reaching a one-week intraday

peak, as expectations of a U.S. Federal Reserve interest rate

cut buoyed demand for risk assets globally.

As of 0943 GMT, FTSE 100 was up 0.2%, rising for a

third consecutive session. The domestically focused midcap index

gained 0.3%.

Global stocks continued to climb after Tuesday's release of

U.S. inflation data for July. The figures, which was viewed as a

critical indicator for a potential Fed interest rate cut in

September, largely met expectations.

This bolstered confidence in a 25-basis-point rate reduction

and propelled Wall Street to fresh highs in the previous

session.

The positive sentiment swept through UK markets on

Wednesday, with healthcare and defence

sectors leading the way, rising 1.5% and 1%,

respectively.

Investor attention is now shifting to Friday's high-stakes

talks between U.S. President Donald Trump and Russian President

Vladimir Putin, aimed at negotiating a peace deal to end the

conflict in Ukraine.

European and Ukrainian leaders will speak to Trump on

Wednesday to emphasize the risks of compromising Kyiv's

interests in pursuit of a ceasefire.

Meanwhile, financials came under pressure with the non-life

insurers index falling 3.7%. Beazley

tumbled 11% after lowering its annual premium growth forecast,

partly hurt by subdued demand for its cyber and property risk

insurance.

Housing sector also fell 0.9%, as homebuilder

Persimmon dropped 2.9%, after cautioning about next

year's margin despite forecasting higher home sales.

Shell inched 0.8% down. The LNG major said on

Tuesday that Venture Global ( VG ) has won a legal battle

against it over its failure to deliver liquefied natural gas

under long-term contracts starting in 2023.

Among other movers, infrastructure products maker Hill &

Smith ( HSHPF ) topped the gains on the midcap index, rising 12%,

after its half-yearly results and announcement of a 100 million

British pound ($135.70 million) share buyback program.

($1 = 0.7369 pounds)