(Reuters) -The UK’s blue chip index held just below its all-time high hit last week as investors assessed the trajectory of U.S. tariffs as well as domestic interest rates, while AstraZeneca gained on successful drug trial results.
The blue-chip FTSE 100 was up 0.4% as of 1105 GMT, while the domestically oriented FTSE 250 index added 0.3%.
AstraZeneca added 1.4% after the pharmaceutical giant said its experimental drug baxdrostat succeeded in lowering high blood pressure in a late-stage study of people whose condition was hard to control or treat.
Associated British Foods rose about 3% after brokerage Panmure Liberum upgraded the retailer to “buy.”
The European Union and South Korea said they were working on trade deals with the U.S. that would soften the blow from looming tariffs as Washington threatens hefty duties from August 1.
Meanwhile, Britain’s labour market cooled sharply in June and the number of people available for work jumped at the fastest pace since the COVID-19 pandemic, according to data also watched by the Bank of England.
The BoE is expected to cut interest rates next month for the fifth time since last August, with traders betting on an 89% chance of a 25 bps deduction, as per data compiled by LSEG.
The country’s inflation figures, due on Wednesday, will offer fresh cues on the central bank’s rate path.
Investors will look out for fresh notes on the nation’s fiscal health when finance minister Rachel Reeves, alongside BoE Governor Andrew Bailey, gives the annual Mansion House speech to London’s financial sector on Tuesday.
Among other stocks, Ashmore gained 2.2% after the emerging markets-focussed asset manager reported slower quarterly net outflows.
The FTSE 100 index logged its biggest weekly percentage gain in two months on Friday, led by mining and healthcare stocks.
(Reporting by Ankita Yadav in Bengaluru; Editing by Sahal Muhammed)
