LONDON: UK equities rose on Friday, mirroring gains across global markets as investors cheered signs of slowing inflation in the United States, while broadcaster ITV rallied following the sale of its stake in BritBox International to BBC Studios.
The internationally focussed FTSE 100 index closed 0.7% higher after ending February flat on the month.
Markets including Japan’s Nikkei, Europe’s STOXX 600 and New York’s S&P 500 hit all-time highs, supported by an AI-inspired rally in technology stocks as well as favourable US inflation data.
“There’s a buoyancy linked to the fact that the interest rate cycle may not be going back down fast, but it’s certainly not going up again either,” said Wes McCoy, UK equity fund manager at Abrdn.
The FTSE 100, however, has lagged on the absence of major technology firms and concerns that the Bank of England may have to keep interest rates higher for longer.
BoE chief economist Huw Pill said he thought the time for the first rate cut by the central bank since the coronavirus pandemic remained “some way off”.
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