This week, it’s all about the Federal Reserve, with traders heavily betting on a 50 bps rate cut. Markets are poised for Wednesday’s decision, marking the first expected rate cut since 2020, though the exact size remains uncertain.
In London, the FTSE 100 rose 0.1% to close at 8,278.44, while the FTSE 250 edged up 0.2% to 20,929.59. However, the AIM All-Share slipped 0.2%, closing at 743.73.
Retailer Marks & Spencer saw a 2.9% rise after RBC Capital Markets and Jefferies boosted their price targets. Kingfisher gained 2.2% ahead of its half-year results, and Auto Trader climbed 0.6% following positive remarks from Bank of America. J Sainsbury also saw a 1.7% boost after favourable commentary from UBS.
On the flip side, Phoenix Group fell 5.3%, despite reporting a more than doubling of total income in the first half of 2024. Concerns arose over the insurer’s pretax loss, which widened to £669 million from £372 million. Analysts at Bank of America pointed out that shareholders’ equity once again missed expectations, overshadowing other positive news.
In the FTSE 250, Playtech surged 14% after resolving a dispute with Mexico’s Caliplay and reporting better-than-expected trading in the first half of 2024. TI Fluid Systems also jumped 14% after rejecting two takeover bids from Canada’s ABC Technologies, deeming the offers as undervaluing the firm. In contrast, TT Electronics plunged 30% following operational issues in two North American sites, prompting a revenue downgrade for the second half of 2024.
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