FTSE 100 pushes higher as US rate cut bets build
Joshua Mahoney, analyst at Rostro, said markets are confident that the Fed will slash rates in the months to come.
He added: 'Market pricing for a rate cut at each of the remaining three meetings of 2025 have tipped above the 50% mark, meaning that it is now the base case scenario that we see rates at least 75bp lower by year-end. No wonder markets are in buoyant mood, with a Goldilocks scenario developing.'
The FTSE 100 index closed up 17.42 points, 0.2%, at 9,165.23. The FTSE 250 ended up slightly at 21,851.56, but the AIM All-Share finished 1.73 points lower, 0.2%, at 757.54.
In Europe, the Cac 40 in Paris rose 0.8%, while the Dax 40 in Frankfurt advanced 0.7%.
In New York, the Dow Jones Industrial Average was up 0.7%, the S&P 500 was 0.2% higher, hitting another all-time high, and the Nasdaq Composite advanced 0.1%.
The upbeat mood followed broadly in line with US inflation figures on Wednesday, which showed a limited impact from tariffs so far.
Bank of America said tariffs have not been the 'inflationary force we expected'.
The building conviction towards US rate cuts put the dollar under pressure and saw bond yields ease.
The pound climbed to 1.36 dollars late on Wednesday afternoon in London while the euro rose to 1.17 dollars.
The yield on the US 10-year Treasury was at 4.23%, trimmed from 4.30%. The yield on the US 30-year Treasury was 4.83%, narrowed from 4.89%.
Pegging the gains in London, BP fell 1.2% and Shell dipped 0.3% as oil prices declined.
A barrel of Brent fell to 65.51 dollars late Wednesday afternoon, from 66.29 on Tuesday, as the International Energy Agency further trimmed its forecast for crude oil demand this year, citing softer global economic growth and market uncertainties.
For 2025, the association of industrialised nations now expects demand to rise by only 680,000 barrels per day, according to the monthly report released in Paris.
The previous forecast had anticipated an increase of 700,000 barrels.
XTB analyst Kathleen Brooks commented: 'The peak of the supply glut will be at the end of 2026, according to the IEA, which could keep a lid on the oil price for the long term.
'The discussions between President Trump and President Putin on Friday could also be weighing on the oil price. If they do find a solution to the war in Ukraine, then it could exacerbate the supply glut even further, and the bias could be to the downside for the oil price as we lead up to the talks. For the FTSE 100, this means that big hitters like Shell and BP could come under further downward pressure.'
Also weighing on the blue-chip index, Beazley, which slumped 11% after cutting revenue guidance.
The Lloyds of London insurer lowered its full-year premium growth guidance, pointing to 'new risks and decreasing predictability' from the impact of new technology and climate change.
Beazley cut its outlook to a 'low-to-mid single digits' percentage. It had previously expected a 'mid-single digits' rise.
'While not a big change, we have noticed that investors have reacted negatively to any revenue pressures through recent reporting,' James Shuck, analyst at Citi said.
'The revenue downgrade is likely to be taken poorly, while the strategy update is unclear at this point,' he added.
Persimmon fell 0.4% despite solid first-half results, which saw pre-tax profit edge up and revenue improve.
Persimmon said it currently expects volumes to grow to around 12,000 units in 2026.
The biggest risers on the FTSE 100 were Spirax, up 240.00 pence at 7,085.00p, AstraZeneca, up 336.00 pence at 11,422.00p, GSK, up 30.00p at 1,434.50p, Unilever, up 91.00p at 4,581.00p, and Antofagasta, up 38.00p at 2,116.00p.
The biggest fallers on the FTSE 100 were Beazley, down 104.00p at 808.00p, Fresnillo, down 43.00p at 1,692.00p, Entain, down 22.80p at 895.20p, British American Tobacco, down 100.00p at 4,188.00p and Coca-Cola Europacific Partners, down 150.00p at 6,770.00p.
Thursday's local corporate calendar has half-year results from insurance firms Admiral and Aviva, plus mining company Antofagasta.
The global economic calendar on Thursday has UK and eurozone GDP reports, US weekly jobless claims data and US PPI figures.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
6 minutes ago
- Scottish Sun
Five ways to get good quality kids shoes before they go back to school for less
Find out how to save on the Lakeland compact daily bread maker SUN SAVERS Five ways to get good quality kids shoes before they go back to school for less Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) NEW shoes are one of the biggest back-to-school expenses. From walking to class to playtime kickabouts, they are put through their paces. Sign up for Scottish Sun newsletter Sign up Get good quality for less with these simple steps. HOP TO IT: Research cheaper good-quality school shoes early. Search sites and and look for cashback deals at and Signing up to newsletters from shoe brands may also net you a discount. Look out for any back-to-school deals at the online outlets of the major brands. At the Apollo Step boys' shoes featuring tough toe bumpers are down from £42 to £24. TOUGHEN UP: For shoes that last longer, choose those with leather uppers, sturdy soles and toe buffers. Designs for girls may not be so robust, especially for budding Lionesses. Look at unisex designs or shoes in the boys' section which tend to be tougher. PAYBACK TIME: Shoe recycling schemes are a great way to save. Skechers invents 'tracker shoes' that monitor your child's exact location Schuh reuse shoes from any brand to give you £5 off a pair of new shoes. And Kickers' Reskinned service gives you £15 to spend when you send an old pair of Kickers back. You can pick up cheaper reconditioned shoes at MEASURE UP: Ideally, get children's feet measured by a shoe specialist, but there are ways to do it at home. Find instructions at which explains how to measure with a printable picture. At look for the QR code to measure your kids' feet with your phone. RIGHT FEETURES: To avoid aches and pains, Steven Thomas, The London Podiatrist, recommends shoes with laces and a zipper down the side, or Velcro fastenings. 'Also, look for shoes that have a nice, wide toe box so they can accommodate a wide foot type and have room for growth.' You can get ten per cent off at Kickers with the code THELONDONPODIATRIST. All prices on page correct at time of going to press. Deals and offers subject to availability. 7 Five cheap ways to get good good quality kids shoes for less Credit: Getty Deal of the day 7 Save £20 on the Lakeland compact daily bread maker Credit: Supplied GET a loaf for less dough with the Lakeland compact daily bread maker, down from £79.99 to £59.99. SAVE: £20 Cheap treat 7 Save 65p on a twin pack of Jaffa Cakes with a Tesco Clubcard Credit: Supplied USE a Tesco Clubcard to get a twin pack of Jaffa Cakes for £1.85 instead of the usual £2.50. SAVE: 65p What's new? THE new McVitie's ice-cream range at Iceland and The Food Warehouse includes Hobnobs and milk chocolate Digestives, combining a crunch and a chill, £4 for 500ml. Top swap 7 Enjoy cable-free lighting with the Searchlight rechargeable LED Touch Bellota floor lamp from for £47 Credit: Next 7 Or switch on the Keko rechargeable floor lamp, £35 from Dunelm Credit: Supplied ENJOY cable-free lighting with the Searchlight rechargeable LED Touch Bellota floor lamp from £47, or switch on the Keko rechargeable floor lamp, £35 from Dunelm. SAVE: £12 Little helper BUYING yellow-packaged products at Morrisons earns Marie Curie a donation. For example, get Kellogg's Crunchy Nut Original for £2.75, down from £3.50, and the charity gets 19p. Shop & save 7 Save £4 a pack of Pampers Baby Dry pants from Asda Credit: Asda GET a pack of Pampers Baby Dry pants from Asda, down from £9.98 to £5.98 and available in different sizes. SAVE: £4 Hot right now GET set for DIY with Wickes paint sale. Its matt emulsion by Kimberley Walsh in blush rose, is £10, down from £14, for 2.5L. PLAY NOW TO WIN £200 7 Join thousands of readers taking part in The Sun Raffle JOIN thousands of readers taking part in The Sun Raffle. Every month we're giving away £100 to 250 lucky readers - whether you're saving up or just in need of some extra cash, The Sun could have you covered. Every Sun Savers code entered equals one Raffle ticket. The more codes you enter, the more tickets you'll earn and the more chance you will have of winning!
The Guardian
6 minutes ago
- The Guardian
Horse racing to go on strike in protest against government's planned betting tax rise
All scheduled racing in Britain on 10 September will be cancelled and the sport will, in effect, go on strike, as racing escalates its protests against a Treasury proposal to align the rate of duty charged on sports betting with the rate for much more addictive games of pure chance such as roulette and online slot machines. The move to abandon meetings at Uttoxeter, Lingfield, Kempton and Carlisle is expected to result in the loss of around £700k to the industry. The action has been agreed following co-operation between Jockey Club Racecourses, which operates Kempton and Carlisle; Arena Racing Company, the operator of Uttoxeter and Lingfield; and the British Horseracing Authority, the sport's ruling body. Gambling on games of chance is currently taxed at 21% of an operator's gross profits, while the duty on betting – on racing, sports and other events without a fixed profit margin for the operator – is set at 15%. There is an additional charge of 10%pc of gross profits for bets on UK racing for the statutory Levy, which has returned money to racing since off-course betting was legalised in the early 1960s. The proposal to equalise the duty rate for betting and gaming products was initially floated by the Treasury in the final months of Rishi Sunak's Conservative government, but it survived the transition to a Labour administration and was the subject of a consultation process which closed in July. Betting and gaming have been treated separately for taxation purposes since the Betting and Gaming Act came into force in 1961. There is a widespread belief in racing that a levelling of the duty rates will make the sport more expensive for gambling operators and as a result, far less attractive when compared to gaming products with a guaranteed return. Alternatives for the tax regime around gambling include a proposal from the Social Market Foundation think tank that gaming duty could be increased to 50% and sports betting to 25%, with changes to the Levy system ensuring that racing would not lose out. The former prime minister, Gordon Brown, has also advocated for a significant rise in the duty charged on fixed-margin gaming products. Launching the British Horseracing Authority's campaign against the tax proposals last month, Brant Dunshea, the BHA's acting chief executive, said that the sport's stakeholders were 'united in their opposition to the Treasury's proposals to harmonise remote gambling duties'. Dunshea added: 'If the Chancellor delivers this tax bombshell at the autumn budget, not only will jobs be lost but the future of Britain's second-largest spectator sport will be in jeopardy. Sign up to The Recap The best of our sports journalism from the past seven days and a heads-up on the weekend's action after newsletter promotion 'This is why it is vital that the government carefully considers the argument made by all British racing's stakeholders and works alongside us to protect a cherished national institution.' The races lost on 10 September are expected to be added to other cards scheduled around the same time. The date chosen for the racing 'strike' is 24 hours before the start of the high-profile St Leger meeting at Doncaster, which the prime minister, Sir Keir Starmer, and his wife, Victoria, a keen racing fan, attended last year.
The Independent
35 minutes ago
- The Independent
Former Labour leader Lord Kinnock calls for two-child benefit cap to be scrapped
Labour must scrap the two-child cap on benefits to lift children out of poverty, the party's former leader Neil Kinnock has said. Rising levels of poverty 'would make Charles Dickens furious', Lord Kinnock said in an interview with the Sunday Mirror, in which he urged ministers to introduce a wealth tax. Lord Kinnock, who led Labour in opposition between 1983 and 1992, is the latest senior party figure to pressure the current Government to end the two-child limit on benefits. Former Labour prime minister Gordon Brown recently said ending the two-child limit, as well as the benefit cap, would be among the most effective ways of reducing child poverty. Speaking to the Sunday Mirror, Lord Kinnock acknowledged the Government may not be able to scrap the two-child cap 'all at once'. He added: 'But I really want them to move in that direction because the figures are that if that did occur it would mean that about 600,000 kids fewer are in poverty.' Lord Kinnock suggested such a move could be funded by a wealth tax on the 'top 1%', telling the Sunday Mirror: 'I know it's the economics of Robin Hood, but I don't think there is anything terribly bad about that.' He warned that over the decade and a half the Conservatives were in power child poverty gradually rose. The Labour peer told the newspaper: 'In 15 years, starting from a position where beneficial change was taking place, we've got to the place that would make Charles Dickens furious. 'It's been allowed to happen because the kids are voiceless and their parents feel powerless. I defy anybody to see a child in need and not want to help.' The two-child limit has been long-criticised by Labour backbenchers as a driver of child poverty. Ministers are expected to set out plans to tackle child poverty at the budget in the autumn.
