UK equities gain as recession spurs Bank of England action

UK equities gained on Thursday, buoyed by a fall in government bond yields after data showed the British economy fell into a recession at the end of 2023, building the case for the Bank of England to ease its monetary policy.

The exporter-heavy FTSE 100 (.FTSE), opens new tab rose 0.4%, while the mid cap FTSE 250 index (.FTMC), opens new tab added 0.5%.

Britain’s economy entered a recession in the second half of 2023 after it shrank by a worse-than-expected 0.3% in the three months to December. It also contracted by 0.1% between July and September.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

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