London equities opened in positive territory on Thursday as investors braced for a key European Central Bank decision and fresh US inflation numbers that could shape the pace of rate cuts.
The FTSE 100 climbed 0.4% to 9,266.17, with the FTSE 250 up 0.3% at 21,590.31, while the AIM All-Share added 0.4% at 764.92. Gains came as traders looked past a cautious global backdrop, focusing instead on the prospect of looser monetary policy on both sides of the Atlantic.
The ECB is widely expected to hold rates steady, leaving President Christine Lagarde’s press conference in the spotlight for any signal of a softer inflation outlook. Across the Atlantic, US CPI data later in the day could prove decisive for the Federal Reserve’s next move, with markets leaning toward a rate cut next week.
Blue-chip names provided early support in London. Shell rose 1.0%, HSBC added 0.8% and AstraZeneca gained 0.4%. BAE Systems led the FTSE 100, climbing 3.0% and extending strong gains this week as geopolitical tensions lifted defence stocks. On the downside, M&G dropped 2.6% after going ex-dividend, while Ashtead slipped 1.4% following a downgrade from Jefferies.
In the FTSE 250, Trainline surged 9.2% after unveiling a £150 million share buyback alongside robust half-year revenue and ticket sales growth.
Fevertree also impressed, jumping 9.7% as it lifted its interim dividend despite weaker profits, pointing to a strong start in the second half of the year. Hays slipped 2.6% after also being cut to ‘hold’ by Jefferies.