FTSE 100 Nears Record; Market Eyes Rate Cuts and Trade Talks
London shares closed higher as the FTSE 100 approached record levels due to soft labor market data, raising hopes for further interest rate cuts. Meanwhile, ongoing U.S.-China trade talks were closely observed. Homebuilder stocks soared while precious metal miners declined significantly, affected by lower-than-expected gold output.
London shares surged on Tuesday, with the FTSE 100 nearing its all-time high following labor market data suggesting potential interest rate cuts. Investors are also focused on U.S.-China trade negotiations.
Britain's pay growth slowed, and unemployment spiked, leading to expectations of rate cuts by the Bank of England. This data may influence the central bank's decision-making in upcoming months, as noted by economist Elizabeth Martins from HSBC.
The home construction sector took the lead with significant gains, while energy shares followed suit driven by rising oil prices. Conversely, precious metal miners saw steep declines amid output challenges at Hochschild Mining's Mara Rosa mine.
(With inputs from agencies.)
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