London Stocks Gain on Energy Boost, Hopes of Record-Low Interest Rates

The benchmark FTSE 100 index climbed 0.2%, with Melrose being the top gainer on its plans to return about 730 million pounds ($1.01 billion) in cash to its shareholders.

The energy index was among the top gainers, rising 2.03%.

The domestically focussed mid-cap index rose 0.1%

British public borrowing fell in May from sky-high levels of a year earlier when the government was ramping up a huge spending response to the coronavirus crisis, and there are signs that the recent recovery in the economy was boosting tax revenues.

GlaxoSmithKline fell 0.5% ahead of plans to boost the spending power of its research-focused pharmaceuticals business at an investor day on Wednesday, as analysts call on the British drugmaker to boost drug development prospects with takeovers or alliances.

(Reporting by Shashank Nayar in Bengaluru; editing by Uttaresh.V)