The UK’s benchmark index reached a new peak on Thursday, driven by positive regional data that highlighted the economy’s robustness, alongside a robust earnings season that supported financials. The blue-chip FTSE 100 was up 0.45% as of 1028. The domestically focused mid-cap index added 0.7% to reach a four-year high. The Week in Breakingviews newsletter provides analysis and perspectives from Reuters’ international financial commentary team. Register your interest here. In November, Britain’s economy experienced a growth of 0.3%, marking its most rapid expansion since June, facilitated by Jaguar Land Rover’s resumption of full production following a cyberattack.
Sterling experienced a slight decline against the dollar following the data release, which did not influence the outlook for policy rates. Traders are currently anticipating approximately 40 basis points of rate cuts from the Bank of England by September. Fund manager Ashmore Group experienced a notable ascent, leading the FTSE 250 with a 17% increase following the announcement of robust net inflows. Meanwhile, Schroders topped the FTSE 100, rising by 8% after indicating that its annual profit would surpass market expectations. Their index, comprising investment banks and brokerages, increased by 3.2%, surpassing the performance of its peers. Banks also strengthened, with Barclays, Lloyds Banking Group, NatWest and HSBC rising between 1.4% and 1.9%.
On the flipside, the precious metal miners’ index slipped 1.3% as gold eased after investors booked profits following a record high in the previous session, while a softer tone from U.S. President Donald Trump on the Federal Reserve chair and Iran also kept a lid on further gains. Burberry opens new tab was also a drag, down 4.2%, mirroring a decline in marquee luxury names in Europe. Homeware retailer Dunelm opens new tab sank 17.6% after warning that a challenging macroeconomic environment and cautious consumer spending would eat into its annual profit.
Elsewhere, Oxford Biomedica opened new tab jumped 10% after the cell and gene therapy manufacturer confirmed receipt of an unsolicited all-cash offer from funds managed by EQT. Wizz Air rose 4.8% after CEO Jozsef Varadi raised the budget carrier’s growth projection for this fiscal year.