FTSE 100 gains on precious metals surge; rate cut bets surge (updated)

NSX

13/09/2024 17:47

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        * 
      FTSE 100 up 0.4%, FTSE 250 adds 1%
    

        * 
      Flutter Acquires 56% Stake In NSX Group For $350m
    

        * 
      UK public's inflation expectations fall to 3-year low
    

        * 
      Precious metal miners lead weekly gains
    

  
 (Updated at 1600 GMT)
    By Khushi Singh and Medha Singh
       Sept 13 (Reuters) - 
    Precious metal mining stocks lifted London's blue-chip index
on Friday as investors raised their bets on a hefty U.S.
interest rate cut next week, but gains were limited as a strong
pound weighed on export-oriented companies.
    The FTSE 100  .FTSE  edged up 0.4%, while the mid-cap FTSE
250  .FTMC  rose 1%. Both stock indexes registered a weekly
advance, led by an over 19.5% rise in precious metal mining
 .FTNMX551030  stocks over the week. 
    The index climbed over 6.8% to its highest level in over 15
months. Gold miners Fresnillo  FRES.L  and Endeavour  EDV.L 
firmed 5.7% and 10.5%, respectively, as gold scaled a record
high against a weaker greenback.  GOL/ 
    Gold prices rose as optimism about the Federal Reserve
cutting U.S. interest rates increased, driven by fund inflows
and a weaker dollar.
    Beverages  .FTNMX451010  were the top sectoral decliners,
down 1.2% after the Italian spirits group Campari  CPRI.MI 
warned about a "very soft" environment for the industry in the
current quarter. UK peer Diageo  DGE.L  slipped 1.4%. 
        Sterling  GBPUSD=  touched a one-week high against the
dollar after the Wall Street Journal and Financial Times
reported it might be a close call on whether the Fed cuts rates
by 25 basis points or by 50 bps at its meeting next Wednesday.
  
        That prompted traders to boost their expectations of a
steeper 50 bps rate cut to 43% from just 14% a day earlier,
CME's FedWatch tool showed.
  
        Meanwhile, the British public's 
    expectations for inflation
     over the coming year dropped to their lowest in three years
in August, likely reassuring policymakers ahead of next week's
interest rate decision.
  
        The Bank of England is expected to keep rates on hold in
its upcoming meeting, according to a Reuters poll of economists.
    Among other stocks, Vodafone  VOD.L  rose 1.1% on
expectations that the telecom provider's merger with Three UK
could win regulatory approval if they can guarantee the $19
billion deal will be good for consumers.
    Flutter Entertainment  FLTRF.L  shares edged up 1.4% after
the Irish betting giant said it will buy a 56% stake in NSX
Group, which operates Brazilian gaming group Betnacional, for
about $350 million.

 (Reporting by Khushi Singh, Medha Singh in Bengaluru; Editing
by Savio D'Souza and Richard Chang)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly
Twitter: @medhasinghs))
 
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