The FTSE 100 saw a slight rise as investors anticipated a significant interest rate cut in the US next week. The index increased by 0.1%, with its growth tempered by a robust pound that impacted its export-driven firms. In contrast, the mid-cap FTSE 250 rose by 0.3% and is on track for its first weekly increase in three weeks.
Shares of precious metal miners like Fresnillo, Endeavour, and Centamin climbed approximately 2% each as gold prices reached a new peak amidst a weakening dollar.
Industrial metal miners also saw gains of 0.9% as copper prices hit a two-week high, fueled by expectations of fiscal stimulus from China.
The pound reached a one-week high against the dollar following reports from the Wall Street Journal and the Financial Times that the US Federal Reserve’s decision on whether to cut rates by a quarter or a half percentage point next Wednesday could go either way. This speculation led traders to elevate their expectations of a more substantial half-point rate cut to 44%, up from 17% just a day prior, as per CME’s FedWatch tool. Bill Dudley, a former New York Fed President, later commented that there was a “strong case for 50”.
In other news, Vodafone’s £15 billion merger with Three UK raised concerns by Britain’s competition regulator that it might lead to higher costs for millions of mobile users. Vodafone’s stock rose by 0.3%.
Flutter Entertainment’s stock dipped slightly after the company announced its plans to acquire a 56% stake in NSX Group, the operator of Brazilian gaming company Betnacional, for approximately $350 million (£266 million).
