UK shares rise as precious-metal miners shine, BoE in focus
The main UK stock indexes rose on Friday. A gauge of precious-metal miners reached a new record high after a spectacular rally in gold and Silver prices this year, as traders priced in further U.S. rate cuts.
The blue-chip FTSE 100 index rose by 0.3% at 1144 GMT while the?midcap FTSE 250 increased by 0.7%.
The FTSE 350 index for precious metal miners soared 4.6% to a'record high, as gold and silver rose more than 1%. Silver prices also reached a 'fresh peak in relation to a softer US dollar.
The FTSE 100 was boosted by Fresnillo Mining and Endeavour Mining, while precious metals miners Hochschild Mining soared 7.6%.
U.S. stocks and European shares were trading near records highs following the Federal Reserve's expected 25 basis point cut in interest rates on Wednesday. Recent labour market data also supported expectations for further easing.
Data showed that Britain's economy contracted by 0.1% over the three-month period ending in October. This is a sign of slowing growth ahead of Finance Minister Rachel Reeves budget. It also reinforces bets of an imminent Bank of England rate reduction.
The markets have assigned a 90 percent chance that the central bank will cut rates by 25 basis points next week. These figures have cast doubt on its forecast for modest growth in the fourth quarter.
The FTSE 100 is expected to gain 0.6% in the coming week, while midcap?index will see a weekly drop of 0.3%.
Jefferies upgraded Holiday Inn's owner, InterContinental Hotels Group to a 'buy' status from a 'hold.'
Card Factory's stock fell by about 26%. The greeting cards and gift retailer had warned that its annual profit would be lower than expected due to lower UK store sales. They also said they were expecting a weaker high street footfall over the holiday weeks.
Harbour Energy's shares rose by 4.1% following the announcement that it would acquire Waldorf Energy Partnership and Waldorf Production, for $170 million. (Reporting and editing by Tharuniyaa lakshmi in Bengaluru, Sruthi shankar in New York; Shasheesh Kuber).
(source: Reuters)
