FTSE 100 Climbs Amid Brokerage Boost, Economic Uncertainty Looms

Britain's FTSE 100 index rose, driven by Diageo's shares after an upgrade, while SThree's profits warned. Diageo led sector gains with a 3.3% increase. Currys showed growth, while ECB may cut rates. UK housing strengthened despite uncertainties, and U.S. inflation suggests a Fed rate cut.

The FTSE 100 index in the UK experienced a rise on Thursday, primarily due to Diageo's shares increasing after a positive brokerage rating. At 0930 GMT, the FTSE 100 was up by 0.2%, with Diageo leading gains by 3.3% after UBS upgraded its rating, catalyzing a 2.9% rise in the beverages sector.

On the flip side, SThree saw a sharp decline of 23%, issuing a profit warning related to challenging hiring conditions amid political and economic uncertainties, especially in Europe. In contrast, Auction Technology surged 7% following a share sale by TA Associates, priced at 5.50 pounds per share.

Amid these market movements, the European Central Bank is poised to lower interest rates due to near-target inflation in the eurozone, while the Bank of England is expected to maintain rates, cautiously indicating future rate reductions. The UK's housing market showed resilience in November despite an uncertain economic forecast.

(With inputs from agencies.)