LONDON: Britain’s FTSE 100 closed at a fresh all-time high on Friday for a fourth consecutive session, as global stocks rallied after US Federal Reserve Chair Jerome Powell hinted at an imminent rate cut.
The blue-chip index ended up 0.2% at 9,321.4, to cap off the week with a near 2% gain, benefiting from a market rotation away from technology stocks that triggered a selloff on Wall Street earlier this week.
The FTSE 100 has also reached new heights of above 9,300 points, advancing 14% this year.
Meanwhile, the midcap index FTSE 250 jumped 1.2% on Friday and finished the week up 1.5%.
Investors worldwide welcomed Powell’s comments at the Jackson Hole Symposium, where he signaled a likely rate cut at September’s Fed meeting.
His speech drew heightened attention following recent criticism from US President Donald Trump and increased market expectations for monetary easing after signs of US labor market weakness.
Banking stocks in London led FTSE 100 gains, rising 0.5%, with Standard Chartered jumping over 4% following a favourable US Department of Justice ruling in a long-standing civil case.
The homebuilders’ index rose 2%.
Luxury goods makers and the automobile and parts index each gained 2.9%.
The energy sector added 0.7% after oil prices nudged up as Russia and Ukraine blamed each other for a stalled peace process.
A survey showed on Friday that British consumers have turned a bit more confident this month after the latest interest rate cut by the Bank of England but are vulnerable to worries about rising inflation and potential tax increases.
Comments
Comments are closed for this article.