2024-07-12 07:35:35
London’s FTSE 100 stock index hit a one-week high on Friday amid broader gains as investors anticipated a rate cut by the Federal Reserve in September after a surprise drop in US inflation data.
The blue-chip FTSE 100 index rose 0.4%, while the domestic-focused mid-cap FTSE 250 index was down 0.1% at 0717 GMT, after closing at a two-year high on Thursday.
Both indexes are on track to post their second weekly gains.
Investor sentiment around the world was boosted by increasing bets for a Fed rate cut in September, following a surprise drop in US consumer prices on Thursday.
London pharmaceutical and biotechnology stocks rose 1.4%, while medical device and services stocks rose 0.7%. The sectors were about to extend their rally into the third and eighth sessions respectively.
Bank heavyweights rose 0.7%. Energy stocks rose 0.4% on higher oil prices but are expected to fall short of their peers this week.
Precious metal miners fell 0.6% to their lowest point, in line with gold prices.
The market is now focused on US producer price data, which could further strengthen the case for rate cuts in September.
As major economies enter another earnings season, investors will be looking to quarterly results to gauge the health of companies.
Next week is UK consumer price data, which will be the focus of attention as a new government approaches and the Bank of England’s August meetings.
Ashmore fell 3.9% after the fund manager reported another net outflow of client money of $2 billion in the quarter as investors continued to shun its emerging market funds. (Reporting by Purvi Agarwal in Bengaluru; Editing by Rashmi Aich)
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