London’s blue-chip stocks ascended to a near one-month high on Thursday, propelled by financials, following the Finance Minister’s reaffirmation of the government’s commitment to fiscal discipline. Additionally, stronger-than-expected GDP data contributed to the positive sentiment.
The benchmark FTSE 100 index rose 0.54% to 10,782.98 points by 09:50, marking its highest level since September 18, while the midcap FTSE 250 edged 0.07% lower.
- British finance minister John Healey stated that this month’s budget would focus on enhancing economic resilience, noting that he and Prime Minister Andy Burnham were in agreement on the importance of maintaining fiscal discipline.
- The yield on the UK’s benchmark 10-year bond experienced a further decline, reaching 5.34% in the wake of Healey’s remarks.
- Heavily weighted banks advanced, with NatWest Group rising 2.3% and Standard Chartered up more than 1%.
In August, the United Kingdom’s gross domestic product experienced a modest increase of 0.1%, driven by optimism surrounding artificial intelligence, contrary to forecasts that anticipated a 0.1% decline. - Bank of England Chief Economist Huw Pill stated that any forthcoming interest rate increase should not be viewed by investors as the commencement of an extended sequence of rate hikes.
- Economists anticipate that the Bank of England will increase interest rates to 4% in November, but they expect a narrow consensus to maintain that level thereafter.
- Consumer staples firms also extended gains, with British American Tobacco rising the most, up 2.6%.
- Limiting the gains were industrial metal miners, down 3.1%, on weaker copper prices over concerns of further US Federal Reserve rate hikes.
- British Land opens new tab rose 2.6% after the commercial property firm said it expects higher half-year profit on office and retail park demand.
- Antofagasta opens new tab fell 5.8%, after the Chilean miner’s third-quarter copper production declined year-on-year.
- Among midcaps, e-commerce group THG surged 18% after lifting annual profit forecast.
- Flexible office-space provider Workspace opens new tab slipped 5.6% after reporting lower quarterly occupancy, with Jefferies downgrading the stock to “hold” from “buy” citing a tougher sales market.
