FTSE 100 hits near two-week high on BoE rate cut bets

Reuters

FTSE 100 hits near two-week high on BoE rate cut bets

8:29 sáng giờ GMT, 20 Tháng 6 2024

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FTSE 100 up 0.8%, FTSE 250 up 0.6%

Bank of England keeps rate steady at 5.25%

Markets increase bets on quarter-point August rate cut

Ocado slumps as Canadian partner pauses warehouse opening

Updated at 1550 GMT

By Pranav Kashyap

June 20 (Reuters) - London's blue-chip stock hit a near two-week high on Thursday, as the Bank of England kept rates on hold as expected, with traders raising the prospects of a rate cut after policymakers' comments.

The FTSE100 .FTSE logged its third straight day of gains, ending 0.8% higher. A 0.4% dip in the pound aided the exporter-heavy index's rise as dollar-earning firms' profits are boosted by a weaker sterling.

The more domestically focused mid-cap FTSE 250 .FTMC added 0.6%.

The BoE'sMonetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% ahead of a July 4 election and some policymakers said their thinking was now "finely balanced".

Markets now see a 46.5% chance of a rate cut in August, compared with 30% before the rate decision. 0#BOEWATCH

Governor Andrew Bailey said it was "good news" that official figures on Wednesday had shown inflation was back at its 2% target but added that it was too soon to cut rates.

"It is clear that the MPC wants to cut and begin dialing back the level of restriction in rates and is happy to look though some of the strength in recent services inflation data," said Jefferies economist Modupe Adegbembo.

Precious metal miners .FTNMX551030 led sectoral gains after bullion prices climbed to a two-week high as rising bets on U.S. rate cut boosted demand. GOL/

Automobiles and parts FTNMX401010 and retailers FTNMX404010 also advanced, while chemical stocks .FTNMX552010 was in a weak spot.

Shares of Ocado OCDO.L fell 12% after the online supermarket's Canadian partner paused a planned opening of a Vancouver warehouse.

CMC Markets CMCX.L soared nearly 12.8%after the trading platform forecast higher operating income in 2025, aided by strong retail and institutional trading and tight cost control measures.

Tate & Lyle TATE.L fell 9% after the sweetener maker struck a $1.8 billion dealto buy U.S.-based CP Kelco from J.M. Huber Corp. Tate & Lyle's shares were also trading ex-dividend.

Reporting by Pranav Kashyap and Medha Singh in Bengaluru; Editing by Sherry Jacob-Phillips, Mohammed Safi Shamsi and Maju Samuel

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