By (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 was up 1.1% by 0715 GMT. The benchmark index is headed for its best day in over a month, if gains hold through close.
Automobile and parts were the biggest gainers with a 2.4% jump.
Industrial metal miners advanced 2% as copper prices hit a one-week high. Energy shares climbed 1.4%, tracking stronger oil prices amid concerns of Hurricane Francine impacting U.S. output. [O/R]
Most major sub-sectoral indexes traded higher except precious metal miners that slipped 0.2% despite an uptick in gold prices.
Global sentiment also bounced back with Asian markets trading higher after Wall Street closed up overnight on a boost from technology stocks.
The U.S. consumer price index data cleared some uncertainty over the magnitude of the Fed’s expected rate cut at its meeting next week, with bets largely skewed towards a 25 bps cut.
Meanwhile, 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.
Investor focus today is on the European Central Bank’s policy decision where it is expected to deliver another 25-basis-point trim. A producer prices index reading is also due in the United States.
The mid-cap FTSE 250 was up 1%.
Trainline was the top gainer on the index with a 10.5% rise after the company said it expects core profit to exceed previous forecast.
Fevertree Drinks dipped about 6% after the beverage maker cut its annual revenue growth forecast.
