London stock indexes experienced an uptick on Friday, with a measure of precious metal miners surging to an unprecedented peak, driven by a remarkable rally in gold and silver prices this year as market participants anticipated further reductions in U.S. interest rates. The UK’s blue-chip FTSE 100 rose 0.3% by 1144, while the midcap FTSE 250 index added 0.7%. The FTSE 350 index of precious metal miners surged 4.6% to a record high as gold and silver prices increased by more than 1%, with silver reaching a new peak amid a weakening dollar. Precious metal miners Hochschild Mining surged 7.6% to lead gains in the UK midcap index, while Fresnillo and Endeavour Mining boosted the FTSE 100.

U.S. and European equities were hovering close to all-time highs following the Federal Reserve’s anticipated reduction of interest rates by 25 basis points on Wednesday, alongside recent labor market data that bolstered expectations for additional monetary easing. Meanwhile, data indicated that Britain’s economy contracted by 0.1% in the three months leading up to October, signaling a loss of momentum prior to finance minister Rachel Reeves’ budget. This development has strengthened expectations for a potential rate cut by the Bank of England in the upcoming week, and markets have priced in a 90% probability of a 25-basis point reduction next week, as the data raises questions about the central bank’s projections for moderate growth in the fourth quarter.

The FTSE 100 is on track to achieve weekly gains of approximately 0.6%, whereas the midcap index is poised for a weekly decline of 0.3%. Among other stocks, InterContinental Hotels Group rose 2% after Jefferies upgraded the Holiday Inn owner to ‘buy’ from ‘hold’. Card Factory opened a new tab, experiencing a decline of approximately 26% following the retailer’s warning of a decrease in annual profit, a forecast attributed to lower-than-anticipated sales in UK stores and the expectation that weak foot traffic on the high street may continue throughout the festive period.

Harbour Energy opens new tab rose 4.1% after the oil and gas producer said it had agreed to acquire all subsidiaries of Waldorf Energy Partners and Waldorf Production for $170 million.