UK’s FTSE 100 hit a one-week high on Thursday, driven by rate-sensitive real estate and personal goods shares as investors dialled back bets of interest rates remaining higher for longer.
The exporter-heavy FTSE 100 index was up 0.4% by 0826 GMT, while the domestically-focussed FTSE 250 index climbed 0.7%. The mid-cap index was near a one-week high.
Real estate investment trusts and real estate stocks climbed 1.2% each.
Chemicals stocks advanced 1.5%, leading sectoral gains. Personal goods shares climbed 1.2%.
The Bank of England (BoE) is now marginally predicted to make only one more increase to the Bank Rate, taking it to 5.50% on Sept. 21, though a significant minority of economists polled by Reuters still expect rates to go even higher this year.
“In the FTSE 100, there is relief that the expectation of how high interest rates will go have been dialled back,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“We have more indications coming out today that employers are becoming more reluctant and cautious about hiring staff and we have had results out from Hays indicating that.”
British recruiter Hays warned net fees in the first-half ending December would decline as the permanent hiring sector remained tough, with employers taking longer to hire new staff.
Liontrust Asset Management surged over 10% after the British asset manager’s takeover offer for GAM failed to gain the required level of investor support.
Liontrust was the biggest gainer on the FTSE 250 index. On the other hand, life insurers Aviva, Legal & General and Just Group were down between 0.4% and 1.8%, trading ex-dividend.
British energy services firm Hunting said it was restructuring its operating footprint further and selling more non-core exploration and production assets to cut costs, sending its shares down nearly 7%.
Shares of Harbour Energy fell 1.6%, after UK’s largest North Sea oil and gas producer narrowed its annual production forecast range.
Comments
Comments are closed for this article.