FTSE 100 Climbs to Two-Week High on Retail Strength and Rate Cut Bets
The FTSE 100 reached a two-week high due to optimistic forecasts from Kingfisher and speculation about a significant U.S. interest rate cut. The index rose by 0.7%, supported mainly by gains in the automobile and retail sectors. Key factors include expectations from the Federal Reserve and BoE, UK inflation data, and corporate movements.
The FTSE 100 surged to a two-week high on Tuesday, driven by strong retail sector performance and growing speculation about a substantial U.S. interest rate cut.
The index rose 0.7% to its highest level since September 3, aided by a modest dip in the pound that benefited export-oriented companies. Significant gains were noted in the automobile and retail sectors, which climbed 1.7% and 1.6% respectively.
European home improvement retailer Kingfisher led the FTSE 100 gains after revising its annual profit outlook upward, while traders bet on a larger interest rate cut from the Federal Reserve. Key meetings for the Bank of England and inflation data will be closely monitored for further economic insights. Playtech shares rose amid corporate restructuring announcements, while Essentra and THG saw declines due to profit warnings and strategic shifts.
(With inputs from agencies.)
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