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London stocks edged higher on Friday as metals prices rose and pulled up miners while investors eagerly anticipated U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium.
The blue-chip FTSE 100 index was up 0.3% at 8,309.29, set to log weekly declines. The mid-cap FTSE 250 was up 0.1% by 0710 GMT, on track for its second week of gains.
Precious and industrial metal miners , which ended at the bottom of the benchmark on Thursday, gained 0.7% and 0.5%, respectively, as prices of gold and base metals rose.
Energy shares gained 0.5% after energy regulator Ofgem raised its price cap on household energy bills by 10% from Oct. 1 to an annual level of 1,717 pounds ($2,250.64). Non-life insurers slipped 0.5% to the bottom of the index.
All eyes are on Powell's speech at the Jackson Hole symposium in Wyoming at 1400 GMT.
"What has been a calm week could see last-minute volatility with Powell’s speech, where he is expected to douse the jumbo rate cut expectations," Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a note.
"There is no reason for the Fed to start cutting by big chunks in the absence of a severe economic slowdown, market stress, or a crisis."
Money markets are pricing in over 75% chances of a 25 bps cut at the Fed's September meeting, amid dovish comments recently from Fed officials and data supporting the narrative of cooling inflation in the economy.
Bank of England Governor Andrew Bailey is also scheduled to speak at the event at 1900 GMT.
In corporate news, Direct Line fell 1.6% after the home and motor insurer flagged a change in its solvency capital ratio for the year ended 2023.
(Reporting by Purvi Agarwal in Bengaluru; Editing by Janane Venkatraman)