FTSE 100 Surges to New Heights Amid Fed Rate Cut Anticipations
London's FTSE 100 reached a new intraday peak, buoyed by financials and miners, amidst global optimism for a Federal Reserve interest rate cut. The index continued to rise despite some tech sector limitations. Traders expect a rate cut following weak U.S. payroll data, while UK business growth slowed.
In a remarkable trading session on Friday, London's FTSE 100 achieved a fresh intraday record, driven by robust performances in both financial stocks and mining companies. The index climbed 0.6% as of 0936 GMT, with analysts linking the rise to global optimism sparked by anticipated interest rate cuts by the Federal Reserve.
The mid-cap index also experienced an upswing, rising by 0.7% as it moved towards a 2.4% gain for the week. The banking sector emerged as a frontrunner, with stocks jumping 1.4%, and investment banking shares were not far behind with a 1.3% increase. Gold price increments propelled precious metal miners Fresnillo and Endeavour Mining to significant gains exceeding 2% each.
Despite the FTSE 100 reaching an intraday peak on Thursday, the day closed with losses due to its limited exposure to the technology sector, which had fueled gains in U.S. markets. The ongoing U.S. government shutdown delayed the jobs report, adding to market uncertainties. British business activity faced slow growth, linked to consumer and company spending hesitancies amidst concerns over potential tax hikes in the forthcoming budget.
(With inputs from agencies.)
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