July 17 (Reuters) - Britain's FTSE 100 closed higher on Wednesday as geopolitical risks drove gains in defensive sectors such as healthcare and consumer goods, while stronger-than-expected UK inflation data eased bets of rate cuts from the Bank of England (BoE).
The blue-chip FTSE 100 index (.FTSE), rose 0.3%, recovering from losses of as much as 0.4% earlier in the session.
Rattling global investors, U.S. presidential candidate Donald Trump questioned U.S. support for Taiwan and a report said Washington was mulling tighter curbs on the export of advanced semiconductor technology to China.
Technology stocks across the globe took a hammering but the defensive stocks that investors flock to during times of economic uncertainty rose.
British consumer prices data showed that inflation held at 2%, defying forecasts of a slight fall, adding to uncertainty around when the BoE would start its monetary policy easing cycle.
The odds of a rate cut in August dropped to 33%, from 49% before the data release. 0#BOEWATCH
"The data confirmed it continues to be sticky in services inflation," said Daniela Hathorn, senior market analyst at Capital.com.
"We have to wait for wages data tomorrow because wages have been a part of the problem in the past and have to see whether that also gives us continued price pressures."
Focus will be on Thursday's UK payrolls and retail sales data which could further sway expectations around the BoE's policy action in August.
Energy stocks gained (.FTNMX601010), 0.8%, tracking gains in oil prices which rose against a weaker dollar and a report that showed decline in U.S. oil stockpiles.
Antofagasta (ANTO.L), fell 6.1% after the Chilean miner said it expects full-year copper output at the lower end of its guidance range.
The mid-cap FTSE 250 index (.FTMC), dipped 0.6%, with Genus (GNS.L), tumbling 10.8% after the animal genetics firm forecast 2024 adjusted pre-tax profit in line with the market view, and 2025 adjusted operating profit to be lower than its earlier estimate.
Reporting by Purvi Agarwal and Roshan Abraham in Bengaluru; Editing by Sherry Jacob-Phillips, Rashmi Aich and Emelia Sithole-Matarise
