News: RIO UPDATE 1-London stocks gain as miners shine, inflation slows its fall

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	  UK inflation slows lesser than expected to 3.2% 

	  ASOS rises on retaining FY outlook, naming new CFO 

	  Entain climbs on better-than-expected results 

	  FTSE 100, FTSE 250 add 0.5% each 

(Updated at 0848 GMT)

British stocks climbed on Wednesday, underpinned by industrial metal miners, while the pound strengthened after a slower-than-expected pace of inflation fall pushed back hopes of a rapid rate cut by the Bank of England.

The resources-heavy FTSE 100 .FTSE and the mid-cap FTSE 250 .FTMC gained 0.5% each after posting steep losses on Tuesday.

Industrial metal miners .FTNMX551020 gained 2.7%, with shares of Rio Tinto (RIO) RIO.L up 3%, after iron ore futures climbed to their highest levels in more than five weeks.

Aerospace and defence sector FTNMX502010 was the top loser, dropping nearly 1%, as geopolitical risks over the Middle East conflict persisted.

Britain's inflation slowed to 3.2% in March, compared with 3.4% a month ago, but was slightly higher than economists' expectations of 3.1%, according to a Reuters poll.

"We are in that consolidation phase and in between narratives. The market is shifting from a soft landing to higher for longer it creating a little bit of noise," said Lilian Chovin, head of asset allocation at the British private bank Coutts.

"Therefore, we are going to remain in this range until more data gets released and we have confirmation of a slowdown."

Traders now expect the Bank of England to cut rates by 38 basis points in 2024, with the possibility of a first rate cut only in November. 0#BOEWATCH

U.S. Federal Reserve Chair Jerome Powell said on Tuesday that monetary policy needs to be restrictive for longer, further dashing investors' hopes for meaningful reductions in borrowing costs this year.

Among individual stocks, ASOS ASOS.L advanced 5% after the online fashion retailer appointed a new CFO and reiterated its full -year forecast for adjusted core profit despite stiff competition and excess inventory.

Shares of Burberry BRBY.L gained 2% after rival LVMH's LVMH.PA first-quarter sales rose and roughly met forecasts.

Entain ENT.L gained 3.6% after the owner of Ladbrokes posted better-than expected first-quarter online gaming revenue due to a rise in its customer base.

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