FTSE 100 gains following Fed's softer tones; eye on GDP data
London's index of FTSE 100 rose on Thursday after the Federal Reserve softened its tone regarding the direction of monetary policy.
The FTSE 100 index closed at 0.5% while the midcap FTSE 250 index rose by 0.10%.
In a vote divided on Wednesday, the Fed reduced rates by 25 basis points as expected but indicated that interest rates would not fall any further in the near future while it waited for clarity in regards to labour market.
Still, traders continue to "bet" on further easing by the U.S. Central Bank.
While Wall Street indexes wiggled due to concerns over 'lofty AI expenditure by tech companies', other pockets in the equity markets rose. The STOXX 600 index in Europe closed 0.6% higher.
Investors will be looking for clues about the UK economy's health in the UK GDP data due on Friday.
A poll shows that all economists expect the Bank of England to reduce interest rates by 25 basis points next week. This is due to an easing of inflation and softening economic signals, which have swayed a MPC with a split decision to loosen policy.
The FTSE350 precious metal miners increased 3.2% as gold and silver prices?climbed in response to a weaker US dollar after the Fed's rate reduction.
Entain, a gambling company, fell 2.2% among individual stocks after it announced that International Distribution Services executive Michael Snape would replace finance chief and vice CEO Rob Wood in the next year.
RS Group, a provider of industrial and electronic components, topped the FTSE 250 after J.P. Morgan upgraded its rating. Ceres Power fell 10.6% as Grizzly Research revealed a short position.
(source: Reuters)
