The UK’s FTSE 100 jumped in early trade on Thursday, as risk-on sentiment got a lift after the US Federal Reserve signalled that its historic policy tightening run was at its end, with focus now shifting to the Bank of England’s rate decision.
By 0806 GMT, the blue-chip FTSE 100 advanced 1.7%, touching its highest level since Oct. 18, while the more domestically-focussed FTSE 250 midcap index gained 2.5%.
Miners of both industrial and precious metals rallied 4.1% and 6.0%, respectively, as most metal prices jumped.
The Fed left interest rates unchanged on Wednesday. Fed Chair Jerome Powell said the historic tightening of monetary policy is likely over as inflation falls faster than expected, with a discussion of cuts in borrowing costs coming “into view.”
UK’s FTSE 100 rises as pound slips on GDP data; eyes on Fed rate decision
Rate-sensitive real estate, real estate investment trusts and homebuilders jumped between 5.7%-3.7%.
Focus would now shift to the Bank of England and the European Central Bank, with both scheduled to announce their respective verdicts on monetary policy later in the day.
Both central banks are widely expected to hold their rates steady.
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