By Khushi Singh
(Reuters) -London’s FTSE 100 hit its highest level in over a week on Thursday, amid broader gains after some clarity around the U.S. Federal Reserve’s expected interest rate cut improved risk appetite.
The blue-chip FTSE 100 ended 0.6% higher, while the mid-cap FTSE 250 was up 0.8%, also registering a one-week high.
Precious metal miners advanced 3.2%, maintaining a six-day winning streak, following record-high gold prices.
The bullion was helped by expectations of an interest rate cut by the Federal Reserve at its Sept. 17-18 meeting. [GOL/]
U.S. producer prices rose slightly more than expected in August. Markets are currently pricing in an 85% chance of a 25-basis-point U.S. rate cut next week, according to the CME FedWatch tool.
Most major sub-sectoral indexes traded higher with industrial metal miners advancing 2.4% as copper prices hit near two-weeks high on signs of firmer demand in top metals consumer China and interest rate cut prospects. [MET/L]
Rate-sensitive homebuilders added 1.9%. A survey showed British property surveyors expect sales to continue to grow in the coming months after a gauge of house prices turned positive for the first time in nearly two years.
The beverages index gained 2.5%, after industry heavyweight Diageo climbed 3% following an upgrade on its rating and price objective from BofA Global Research.
On the contrary, pharma and biotech shares tumbled 1.8% as the biggest sectoral decliners.
Trainline was the top gainer on the mid-cap index with a 9.2% rise after the company said it expects core profit to exceed previous forecast.
Fevertree Drinks dipped 11.6% after the beverage maker cut its annual revenue growth forecast.
Meanwhile, the European Central Bank lowered its deposit rate by 25 basis points to 3.50% in a widely telegraphed move, following up on a similar cut in June as inflation and economic growth slowed.
The Bank of England is widely expected to hold rates at its meeting later this month.
(Reporting by Khushi Singh, Purvi Agarwal in Bengaluru; Editing by Eileen Soreng and Andrea Ricci)
