Financial Markets Rally as Focus Shifts to Fed Rate Decision

London's FTSE 100 index rose as investor optimism returned, following a recent tech stock slump. The market's attention turns to the Federal Reserve's upcoming rate cut decision. Technology shares remain volatile, but strong earnings reports from key businesses may bolster confidence.


Devdiscourse News Desk | Updated: 28-01-2025 22:39 IST | Created: 28-01-2025 22:39 IST
Financial Markets Rally as Focus Shifts to Fed Rate Decision
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On Tuesday, London's FTSE 100 index climbed, marking its best performance in over a week as the global technology market staged a recovery. Investors are now eyeing the U.S. Federal Reserve's rate cut decision scheduled for later this week, which could influence future market movements.

The FTSE 100 rose by 0.3% to 8,533.87 points, while the FTSE 250 gained 1.1%, snapping a four-day losing streak. Household goods and home construction led sector gains, while a 0.5% slip in the pound aided exporters. Meanwhile, a new low-cost Chinese AI model has introduced uncertainty among investors.

Focus shifted to the earnings of major tech companies, crucial to stabilizing tech share prices, which have struggled since Monday. Additionally, the Fed's first anticipated rate decision of the year, expected to maintain steady lending rates, could impact markets. Meanwhile, Computacenter shares surged with its impressive profit report.

(With inputs from agencies.)

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