FTSE 100 rises to end week higher amid hopes of US rate cut

London’s blue-chip index rose 30 points to end the week on 8,253, a 0.4% rise.

Alex Daniel
Friday 12 July 2024 12:39 EDT
Investors were boosted by hopes of a September interest rate cut by the Federal Reserve (Kirsty O’Connor/PA)
Investors were boosted by hopes of a September interest rate cut by the Federal Reserve (Kirsty O’Connor/PA) (PA Archive)

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The FTSE 100 nudged upwards on Friday – driven higher by several utilities, housing and mining stocks.

The blue-chip index rose 30 points to end the week on 8,253, a 0.4% uplift.

Investors were buoyed this week by stronger-than-expected gross domestic product news in May on Thursday.

Early in the day, they had another boost amid growing hopes of a September interest rate cut by the Federal Reserve after US inflation data fell.

Danni Hewson, head of financial analysis at AJ Bell, said: “It’s hard to believe it has only been a week since Labour’s landslide election victory changed the UK’s political make-up.

“There’s been no shortage of big announcements from Number 11 but the main economic news impacting London markets is rooted in the past, with faster than anticipated economic growth in May slashing expectation of an August interest rate cut by the Bank of England.

“Add that to cooler than expected inflation over in the US and it’s created an economic stew that has boosted the value of the pound.”

France’s CAC 40 finished 1.3% up, while Germany’s Dax rose 1.2%.

Stateside, the S&P 500 was up 0.7% as markets were closing in London, while the Dow Jones was up 0.8%.

The pound was up 0.5% at 1.299 US dollars and was up 0.2% at 1.191 euros.

The price of a barrel of Brent crude oil was down 0.2% to 82.75 US dollars as markets were closing in London.

The biggest risers on the FTSE 100 were Rightmove, up 23p to 582p, Spirax, up 245p to 8,950p, Frasers, up 24p to 875p, Next, up 198p to 9,108p, and Marks & Spencer, up 6p to 310p.

The biggest fallers on the FTSE 100 were United Utilities, down 37p to 1057p, Endeavour Mining, down 42p to 1811p, Rentokil, down 10.4p to 464p, IAG, down 3.9p to 174p, and Severn Trent, down 56p to 2659p.

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