On Thursday, British equities experienced a lift as investors looked forward to a widely anticipated rate cut by the European Central Bank (ECB), although gains were tempered by companies trading ex-dividend. The FTSE 100, a blue-chip index, inched up by 0.3% to 8,273.57 points, marking a second consecutive day of gains. Meanwhile, the pound remained stable at $1.2781. The FTSE 250, representing mid-cap stocks, rose by 0.4%, set to break a two-day losing streak.
Investors eagerly awaited the ECB’s monetary policy decision scheduled for 1215 GMT, with particular attention on the remarks from the central bank’s president, Christine Lagarde, for insights into future interest rate movements. Christopher Peters, trading floor manager at Accendo Markets, noted that the ECB’s expected rate cut, the first since 2019, could potentially prompt other central banks to consider reducing rates.
This anticipation followed the Bank of Canada’s lead on Wednesday when it initiated its rate easing cycle, the first among G7 nations. The Bank of England, which is set to meet in two weeks, is likely to closely follow the ECB’s actions.
The FTSE 350 saw its precious metal miners at the top, with gold prices inching higher in anticipation of the U.S. non-farm payrolls data. Notable corporate movements included John Wood Group, which surged by 9.9% after announcing its board’s decision to engage with Sidara on an improved takeover proposal. Additionally, Antofagasta was among the top gainers on the FTSE 100, climbing 1.4% after the miner signed a $1.5 billion investment deal to enhance water supply at its Chilean operations.
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