London’s FTSE 100 index closed up 0.61% at 7,930.92 points, nearing its all-time high, as expectations of imminent interest rate cuts fuel investor optimism.
On Friday, the FTSE 100, London’s leading stock market index, demonstrated robust performance by closing up 0.61% at 7,930.92 points, approaching its all-time high. This gain was driven by investor optimism over potential interest rate cuts, with the market rallying behind a more dovish stance from central banks. Kathleen Brooks of XTB underscored the expectation of rate cuts in the coming months, including a significant cut anticipated in June and possibly two more within the year.
The rise in the FTSE 100 was significantly attributed to banking, finance stocks, and major consumer goods companies, with Reckitt Benckiser being a notable contributor. Despite this upturn in the UK, the performance of global markets varied. In Europe, Germany’s Dax index experienced a slight increase of 0.14%, while France’s Cac 40 declined by 0.34%. Across the Atlantic, the US markets had a mixed day, with the Dow Jones decreasing by 0.5% and the S&P 500 remaining largely unchanged.
In corporate developments, Wetherspoon reported a substantial profit increase but saw a decline in its share price. The company revealed plans to expand its UK presence. Aston Martin also made headlines by appointing Adrian Hallmark, formerly of Bentley, as its new CEO, which was received positively by the market.
The biggest gainers of the day on the FTSE 100 included Phoenix Group, Natwest Group, Prudential, M&G, and Reckitt. Conversely, JD Sports, Ocado, Rightmove, Frasers, and IAG were among the main decliners. The fluctuation of the pound against the dollar, dropping by 0.5% to 1.259, also played a role in the day’s financial dynamics.
