UK stocks saw an uptick as markets moved towards weekly gains, fueled by investor optimism over potential interest rate reductions by the Bank of England in light of recent economic indicators.
The FTSE 100 experienced a 0.7% rise, reaching its highest point in over a week, while the mid-cap FTSE 250 saw a 0.5% increase. Both indices were on track to register weekly gains, breaking a two-week downward trend.
Industrial metal mining stocks surged by up to 3.2%, mirroring the rise in base metal prices. This increase was largely attributed to expectations of rate cuts by the US Federal Reserve.
Despite inflation remaining steady at 4% and the economy entering a recession, market sentiment has been bolstered by the anticipation that the Bank of England might reduce interest rates from their nearly 16-year peak.
UK retail sales unexpectedly jumped by 3.4% in January, yet this did not diminish the market’s positive outlook.
Money markets are currently factoring in approximately 72 basis points of interest rate cuts for this year.
In individual stock movements, Segro’s shares climbed as much as 2.5% after the warehousing group reported a promising outlook for its investment market business in 2024 and announced annual profits that exceeded expectations.
