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By Khushi Singh
(Reuters) -London’s 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 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 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 (LON:) 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.
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