FTSE 100 Rebounds Amid Reckitt Gains, Oil Price Surge
The FTSE 100 rebounded from recent lows, driven by gains in Reckitt Benckiser and oil stocks. While budget concerns linger, a 25-basis-point rate cut by the Bank of England is expected. Focus remains on U.S. payroll data for Federal Reserve rate cut cues. Tesco and Boohoo also showed gains.
The UK's FTSE 100 showed resilience on Friday, recovering from recent three-month lows, propelled by significant gains in Reckitt Benckiser and a surge in oil stock prices. The budget-related inflationary concerns loomed over the market but were eclipsed by positive movements in key stocks.
The FTSE 100 climbed 0.6% by mid-morning, buoyed by a 9% rally in Reckitt Benckiser shares following the company's exoneration in a litigation case. Meanwhile, oil giants Shell and BP experienced a more than 1% increase each, riding the wave of a 3% hike in crude prices on geopolitical tensions concerning potential conflict between Iran and Israel.
Despite these positive notes, the FTSE 250 saw a modest 0.2% increase as new finance minister Rachel Reeves' budget drew criticism for its focus on spending and borrowing rather than economic expansion. Market sentiments remain wary of inflationary trends and potential impacts on rate cuts. Market watchers keenly await the Bank of England's next move, with a 25-basis-point rate cut anticipated. Across the Atlantic, U.S. payroll data is set to provide further insight into the Federal Reserve's forthcoming decisions.
(With inputs from agencies.)
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