LONDON: Britain’s FTSE 100 index nudged higher on Wednesday, led by precious metal miners, after the US inflation print came in line with expectations, boosting the likelihood of a Federal Reserve rate cut next week. The blue-chip FTSE 100 was up 0.3%, while the midcap FTSE 250 was flat.
Global shares rose as closely watched US consumer prices increased as expected in November, keeping the Federal Reserve on track to deliver a third consecutive interest rate cut next week against the backdrop of a cooling labor market and rental costs.
Precious metal miners led the sectoral gains for UK stocks, advancing 5.1%, tracking gains in gold prices after the data.
Gold miner Endeavour Mining climbed 5.9% to the top of FTSE 100 while Pearson rose 3.2% after J.P. Morgan raised target price on stock to 1400p from 1170p.
Banking group Lloyds advanced 2.4% after British lender Close Brothers was granted permission to appeal a ruling that motor finance brokers must fully inform customers about commissions on car loans.
Personal goods also added 1.8%, while banks were up about 1%.
The pound weakened against the dollar, also boosting export-oriented stocks in the FTSE 100.
Real estate investment trusts companies led the sectoral losses, dropping 1.4%, while utilities declined 1.1%.
Energy stocks were down 1%, led by Shell which dropped 1.2% to be a bottom performer in the blue-chip index.
Meanwhile, the Bank of England is expected to keep interest rates on hold next week, moving more slowly to cut borrowing costs than central banks in Europe and the US Friday’s gross domestic product estimate for October will be a key economic indicator before the BoE’s decision.
Among other stocks, Kainos Group was a top gainer on the mid-cap index, soaring 4.5%, after the IT software provider re-appointed Brendan Mooney as chief executive officer.
Comments
Comments are closed for this article.