London Markets Surge on Rate Cut Hopes Amid Global Optimism

In a buoyant session, London's FTSE 100 index climbed to a one-week high as global markets basked in hopes of a U.S. Federal Reserve rate cut. The index gained 0.2% by mid-morning, marking its third consecutive rise, while the midcap index added 0.3%.

Confidence was spurred by U.S. inflation data that aligned with predictions, fueling expectations for a forthcoming 25-basis-point rate reduction. This optimism drove Wall Street to new peaks, with the positive mood extending to UK markets, notably in the healthcare and defense sectors.

Markets now await Friday's discussions between U.S. President Trump and Russian President Putin on the Ukrainian conflict. Meanwhile, financial stocks struggled, with Beazley dropping 11% after a forecast cut. Housing stocks also faltered, led by Persimmon's warning on margins. Hill & Smith, however, soared 12% after strong earnings results and a significant share buyback announcement.

(With inputs from agencies.)