LONDON: London’s FTSE 100 recovered ground on Friday, trimming earlier losses as increased expectations for Federal Reserve interest rate cuts improved global market sentiment, while investors now await next week’s UK budget announcement. The blue-chip index, however, ended the week down 1.7 percent, marking a steeper weekly decline than those seen in April when markets were rattled by US President Donald Trump’s sweeping tariff announcements.
The more domestically-focused mid-cap index extended its losing streak to an eighth consecutive session, dropping 0.1 percent on Friday and recording weekly losses of 2.2 percent.
Thursday’s global rally, fueled by chip giant Nvidia’s upbeat forecast, proved short-lived as concerns about a potential AI bubble resurfaced.
However, markets regained some footing after New York Fed President John Williams, a voting member of the Federal Open Market Committee, suggested the central bank could still implement rate cuts - boosting both rate cut expectations and overall sentiment.
In UK markets, beverages stocks rose 2 percent, while homebuilders’ stocks gained 3.4 percent.—Reuters
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