UK’s FTSE 100 index advanced on Friday, on track for its first weekly rise in four as investors awaited cues on the US interest rate outlook, while a slump in the shares of CMC Markets and Watches of Switzerland weighed on the mid-cap index.
The exporter-heavy FTSE 100 rose 0.3%, while the FTSE 250 index slipped 0.1%. Both the indexes were on track for weekly gains.
Investors will closely watch US Federal Reserve Chair Jerome Powell’s speech, scheduled at 1405 GMT, for clues on the outlook for interest rates at a time when most believe the central bank is nearly done hiking rates.
“The lack of big-hitting news means there’s little to rock the FTSE 100 boat, but there is a sense of bated breath ahead of Fed Chair Jerome Powell’s speech later today,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said in a note.
UK stocks have supported this by expectations that the Bank of England (BoE) may not hike interest rates as aggressively as feared as data painted a gloomy picture of the British economy.
BoE Deputy Governor Ben Broadbent is set to speak at the Jackson Hole symposium on Saturday.
Meanwhile, luxury watch retailer Watches of Switzerland plummeted 26.5%, weighing on the midcap index, on news that Rolex will buy Swiss-based retailer Bucherer’s business.
Jefferies analyst James Grzinic said in a note that “the market is debating today the extent to which the news signals a growing risk of a weakening future relevance of Watches of Switzerland to a key supplier for the group.”
Shares of CMC Markets plunged 12.6% after the online trading platform forecast lower annual profit. However, Aston Martin rose 4.5% after brokerage Jefferies upgraded the stock.
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