🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

FTSE 100 hits one-week high as US rate cut expectations boost sentiment

Published 12/09/2024, 05:47 pm
© Reuters. FILE PHOTO: LSEG signage is seen on screens in the lobby of the London Stock Exchange in London, Britain, May 14, 2024. REUTERS/Hannah McKay/File Photo
UK100
-
FTMC
-

By Khushi Singh

(Reuters) -London's FTSE 100 hit its highest level in over a week on Thursday, amid broader gains after some clarity around the U.S. Federal Reserve's expected interest rate cut improved risk appetite.

The blue-chip FTSE 100 ended 0.6% higher, while the mid-cap FTSE 250 was up 0.8%, also registering a one-week high.

Precious metal miners advanced 3.2%, maintaining a six-day winning streak, following record-high gold prices.

The bullion was helped by expectations of an interest rate cut by the Federal Reserve at its Sept. 17-18 meeting. [GOL/]

U.S. producer prices rose slightly more than expected in August. Markets are currently pricing in an 85% chance of a 25-basis-point U.S. rate cut next week, according to the CME FedWatch tool.

Most major sub-sectoral indexes traded higher with industrial metal miners advancing 2.4% as copper prices hit near two-weeks high on signs of firmer demand in top metals consumer China and interest rate cut prospects. [MET/L]

Rate-sensitive homebuilders added 1.9%. A survey showed British property surveyors expect sales to continue to grow in the coming months after a gauge of house prices turned positive for the first time in nearly two years.

The beverages index gained 2.5%, after industry heavyweight Diageo (LON:DGE) climbed 3% following an upgrade on its rating and price objective from BofA Global Research.

On the contrary, pharma and biotech shares tumbled 1.8% as the biggest sectoral decliners.

Trainline was the top gainer on the mid-cap index with a 9.2% rise after the company said it expects core profit to exceed previous forecast.

Fevertree Drinks dipped 11.6% after the beverage maker cut its annual revenue growth forecast.

© Reuters. FILE PHOTO: LSEG signage is seen on screens in the lobby of the London Stock Exchange in London, Britain, May 14, 2024. REUTERS/Hannah McKay/File Photo

Meanwhile, the European Central Bank lowered its deposit rate by 25 basis points to 3.50% in a widely telegraphed move, following up on a similar cut in June as inflation and economic growth slowed.

The Bank of England is widely expected to hold rates at its meeting later this month.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.