The FTSE 100 ended Thursday on a positive note, closing 0.6% higher at 8,240.97. The FTSE 250 followed suit, rising 0.8% to 20,695.77, while the AIM All-Share added 0.4% to finish at 741.36.
The European Central Bank (ECB) cut interest rates by 25 basis points, bringing its key deposit rate down to 3.50%. While expected, the ECB emphasised it was not committing to a specific path for future monetary policy, leaving the door open for further adjustments. Despite the rate cut, markets remained largely unaffected, with global equities in generally positive territory.
In the U.S., producer price data for August showed a 1.7% annual increase, lower than the previous month’s 2.1% rise, and below the forecasted 1.8% climb. Month-on-month, producer prices rose 0.2%, beating expectations. Core producer prices, excluding food and energy, saw a 2.4% year-on-year increase in August, with a 0.3% monthly rise, also exceeding forecasts.
On the FTSE 100, rising gold prices buoyed mining stocks. Fresnillo climbed 3.6%, while Endeavour Mining gained 2.8%. Anglo American rose 3.0%, Glencore added 2.7%, and Antofagasta advanced 2.3%.
Diageo rose 3.0% following an upgrade from Bank of America, which shifted its rating to ‘buy’ from ‘neutral’.
Rentokil Initial, however, fell another 2.1%, extending its losses following a profit warning on Wednesday.
On the FTSE 250, Trainline surged 9.2% after reporting a 16% rise in revenue for the half-year ending August 31, alongside strong ticket sales growth. Cybersecurity firm NCC Group jumped 11% after raising its profit outlook for the four months to September 30, expecting adjusted operating profit to hit £6 million, up from previous guidance of £3.5 million.
On AIM, Fevertree Drinks tumbled 12% after cutting its sales guidance due to poor weather conditions and a subdued consumer environment. The company reported a 1.5% decline in revenue for the first half of the year, missing growth expectations.
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