UK Shares Climb Amid Global Equity Gains and Anticipation of BoE Policy Decision

UK shares rose on Thursday following a 50-basis-point rate cut by the Federal Reserve, while investors awaited a Bank of England policy decision. Gains were broad-based across the London market, with notable increases in the FTSE 100, mid-caps, and small-caps. The move bolstered economic confidence and lifted global equities.

UK shares climbed on Thursday, mirroring gains in global equities after the Federal Reserve slashed interest rates by 50 basis points. Investors are now focused on the Bank of England's (BoE) policy decision expected later today.

The London market's rise was widespread, with the FTSE 100 increasing by 0.9%, mid-caps advancing 0.8%, and small-caps up by 0.3% as of 0710 GMT. The Federal Reserve's aggressive rate cut on Wednesday, driven by easing inflation and the need to support the labor market, significantly boosted market confidence.

Global equities surged and the sterling strengthened against the dollar following the Fed's move. Despite the UK's more gradual approach to lowering interest rates, with the BoE expected to maintain its benchmark rate at 5%, UK policymakers continue to struggle with rising inflation, particularly in the services sector. Retailers led sector gains, with Next and Ocado Group experiencing significant share price increases.

(With inputs from agencies.)