UK's FTSE 100 rises ahead of key Federal Reserve speech

(Reuters) - The FTSE 100 rose on Wednesday, helped by consumer discretionary and energy stocks, though investors were cautious ahead of U.S. Federal Reserve Chair's speech later in the day.

The blue-chip FTSE 100 gained 0.3% by 0821 GMT and was on track for its best month in two years.

Consumer discretionary shares like Flutter Entertainment gained 2.1% after JP Morgan raised the company's price target.

Energy stocks took an early lead, gaining 0.2% as crude oil prices climbed on falling U.S. crude inventories and a weaker greenback. [O/R]

A dip in the U.S. dollar turns commodities cheaper for foreign currency holders.

All eyes were on Fed Chair Jerome Powell's speech on the economic outlook and the labour market at a Brookings Institution event later in the day, where investors looked for clues about the central bank's future monetary policy path.

The domestically-focused FTSE 250 midcap index climbed 0.3%.

Among single stocks, Home REIT Plc gained 7.5% after the housing provider for the homeless said it was financially sound, dismissing allegations about its finances raised by a short-seller.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Dhanya Ann Thoppil)