(Reuters) – British equities were broadly higher on Thursday, building on their strong gains seen in the last session as markets eyed potential interest rate cuts by the Federal Reserve this year following an easing core inflation reading.
The blue-chip FTSE 100 was up 0.9% as of 1017 GMT, hitting its highest level in over a month, while the more domestically focussed FTSE 250 midcap index added 0.2%.
Precious metal miners climbed 3.2% as gold prices held near their highest in a month. [GOL/]
Aerospace and defence gained 2.1%, with Roll-Royce up 2.5% after Morgan Stanley increased its price target on the engineering firm.
Thursday’s gains added to the main indexes’ more than 1% jump in the previous session, when official data showed British inflation slowing unexpectedly last month and core measures of price growth – tracked by the Bank of England – falling more sharply.
This development is likely to be welcomed by Finance Minister Rachel Reeves after a market sell-off earlier in the month in response to the announcement of significant tax increases for businesses.
On the day, Britain’s economic output also returned to growth in November, the first month after the tax changes, but the expansion was smaller than expected.
Global markets also had gotten a boost on Wednesday after easing core U.S. inflation reading on Wednesday kept potential rate cuts by the Federal Reserve on the table.
Burberry jumped 9% after Richemont, the owner of Cartier jewellery, fuelled hopes of a revival for the luxury goods industry, with end-of-year sales that exceeded expectations, lifting shares across the sector.
Antofagasta rose 3.9% despite the Chilean miner reporting a modest 1% rise in its 2024 copper production to 664,000 metric tons, which was below its forecast.
Trustpilot jumped 16% after the global review platform forecast full-year adjusted core profit ahead of market consensus.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Vijay Kishore)
