London stocks set for weekly gains; investors assess key economic data

• FTSE 100 up 0.3%, FTSE 250 down 0.1%
• UK economy stagnated in July, GDP data shows
• Ocado falls as Kroger signals rethink on automated facilities

Sept 12 (Reuters) - London shares were mixed on Friday but were set for weekly gains as markets priced in the likelihood of an interest rate cut by the U.S. Federal Reserve next week, while investors also assessed key domestic economic data.

The blue-chip FTSE 100 .FTSE advanced 0.3% by 0935 GMT, and was set for its second straight weekly gain. The domestically focussed mid-cap index .FTMC edged down 0.1% but was also on track for a weekly rise.

Precious metal miners .FTNMX551030 advanced 2.5%, tracking higher gold prices. Fresnillo FRES.L rose 2.8%, Endeavour Mining EDV.L up 1.7% and Hochschild Mining HOCM.L added 4.8%.

Industrial miners .FTNMX551020 also advanced, tracking higher copper prices. Anglo American AAL.L rose 2.1%, Glencore GLEN.L added 3.7%, while Antofagasta ANTO.L advanced 2.5% and Rio Tinto RIO.L rose 1.7%.

Aerospace and defence sector .FTNMX502010 hit a fresh record high, last up 1.1%, and was set for its largest weekly rise in over six months. BAE Systems BAES.L rose 1.4% and Avon AVON.L added 1.9%.

Hopes of an imminent interest rate cut by the U.S. Fed, a surge in gold prices and a rally in the defence sector have provided some support to the FTSE 100 this week.

Utility stocks .FTUB6510 such as United Utilities UU.L, National Grid NG.L and Severn Trent SVT.L also advanced in the session.

Meanwhile, personal goods .FTNMX402040 stocks declined 3.2%, with Burberry BRBY.L falling 3.7%.

Healthcare stocks .FTNMX201030 edged down 0.2%, with animal genetics firm Genus GNS.L falling 1.5%.

Retail stocks .FTNMX404010 lost 0.4%, with JD Sports Fashion JD.L falling 2.2% to the bottom of the benchmark index.

In other moves, online supermarket and tech firm Ocado OCDO.L fell 11.6% to the bottom of the mid-cap index, after its U.S. grocery partner Kroger flagged it will review its warehouse investments.

On the data front, Britain's economy recorded no growth in July after a sharp drop in factory output, matching expectations for a slower start to the second half of 2025, but still disappointing for the government ahead of November's budget.