| Updated:
Trending
- Bognor Regis: Man arrested on suspicion of assault
- First Trailer, Release Dates, First Photos and More – Hollywood Life
- Does ‘Wicked’ Have an After-Credits Scene? Post-Credits Rumors – Hollywood Life
- M1 northbound between J17 and J18 | Northbound | Congestion
- Author Robert Bauer’s New Book, “Hell’s Torment,” is a Powerful Novel Exposing the Hidden Agendas of Spiritual Leaders and Truths Kept Hidden from the World’s Faithful
- Eden AI raises €3M seed round to bridge gap between AI models and business needs
- London Gatwick Airport evacuated due to ‘police incident’
- Gatwick Airport chaos as south terminal evacuated over ‘security incident’
FTSE 100 Surges as Markets Await Bank of England Rate Decision
The FTSE 100 began the week on a strong note, climbing one percent within the first three hours of trading as investors anticipate a possible interest rate cut by the Bank of England later this week.
Following a record-setting performance in May, when the FTSE 100 reached an all-time high, the index has shown strong gains on Thursday, Friday, and today, raising hopes that London’s main market might replicate its earlier success.
With a 3.4 percent increase over the past three days, another one percent rise could push the FTSE 100 to a new record.
Why is the FTSE 100 Performing Well Today?
Only 13 of the FTSE 100 stocks saw declines this morning, with Reckitt leading the losses due to concerns over potential litigation in the U.S. related to its baby formula. The stock fell more than nine percent at the open, accompanied by Entain and Pearson, which also dropped over one percent following disappointing earnings reports.
In contrast, the majority of FTSE 100 stocks experienced growth, with 18 rising by at least 1.5 percent in the opening hours. Notable gainers included Airtel Africa, NatWest, and JD Sports, each seeing their stock prices increase by approximately three percent.
A significant factor in the FTSE 100’s recent performance has been the rebound in oil stocks. Dan Coatsworth, an investment analyst at AJ Bell, highlighted that Shell and BP were major contributors to the index’s gains as oil prices edged up to $81.21 per barrel. After a decline in oil prices since early July, this stability has provided reassurance to investors.
The FTSE 250, which focuses more on domestic companies, showed similar trends with only a dozen stocks falling over one percent this morning, while many others saw gains.
Markets have started to rally around the prospect of an interest rate cut by the Bank of England, with the likelihood of such a move increasing from around 45 percent to 60 percent over the weekend. However, some analysts argue that the Bank should delay any decision until its September meeting due to the influx of data expected over the summer.Source link