FTSE 100 edges higher on rising Fed rate-cut hopes; JD Sports up on strong sales
3:53 am Thursday, August 22nd, 2024
(Reuters) – The UK’s benchmark FTSE 100 stock index rose on Thursday, as rising optimism around an imminent interest rate cut by the U.S. Federal Reserve boosted sentiment, while JD Sports gained after the sportswear retailer reported higher quarterly sales.
The blue chip FTSE 100 was up 0.3% at 8,306.87 as of 0715 GMT. However, the mid-cap FTSE 250 index was down 0.2%, after logging its best day in more than a week on Wednesday.
Personal care, drug and grocery shares, and automobile and parts were the top gainers, rising 1.2% and 1.3%, respectively. The sub-indexes were lifted by gains in top sectoral players – Unilever and Aston Martin.
On the flip side, heavyweight energy shares slipped 0.7%, leading declines among sectors, after oil prices dropped on global demand concerns. [O/R]
Personal goods and industrial metal miners were off 0.6% each.
Investors found some comfort in the minutes of the Fed’s last policy meeting, where a “vast majority” of officials said a September rate cut was likely.
Investors’ focus during the day will be on Purchasing Managers Index (PMI) surveys in the U.S., UK and other economies, alongside a weekly reading of jobless claims in the U.S.
The eagerly anticipated Jackson Hole economic symposium is also on the market’s radar, with Fed Chair Jerome Powell set to speak on Friday.
The policymaker is expected to acknowledge the case for a September rate cut amid dovish comments from other central bank officials and data adding to the narrative of cooling inflation.
Among individual stocks, JD Sports Fashion jumped 3.2% after the company reported a 2.4% rise in second-quarter underlying sales. The stock topped the FTSE 100 index.
Ithaca Energy slipped 2.9%, after the North Sea oil and gas company reported a lower first-half net profit.
(Reporting by Purvi Agarwal in Bengaluru; Editing by Rashmi Aich)
