Global stocks edge higher as hopes of interest rate cuts grow
London’s FTSE 100 was up 0.34% or 25.54 points, closing at 7,515.38.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Global stock markets enjoyed a boost on Wednesday, after new jobs data from across the pond indicated that higher interest rates are continuing to work their way through the economy.
London’s FTSE 100 moved higher with mining giants seeing gains after dragging on the index earlier in the week.
The blue-chip index was up 0.34% or 25.54 points, closing at 7,515.38.
Job openings in the US fell to the lowest level in about two years in October, which some investors took as another sign that the jobs market is slowing, meaning high interest rates are working.
As the world’s largest economy, investors pay close attention to economic data which could suggest inflation pressures are easing.
Nevertheless, its top share indices were more or less flat by the time European markets closed, after seeing gains in earlier trading.
In Europe, Germany’s Dax continued its rally, closing 0.75% higher. France’s Cac 40 was also up by 0.66%.
Michael Hewson, chief market analyst for CMC Markets UK, said: “It has been another positive day for European markets, with the German Dax posting yet another record high, after disappointing German factory orders data prompted increased speculation that the ECB (European Central Bank) may well be forced into cutting rates sharply in the early part of 2024.”
The pound was relatively flat against the US dollar, and up by about 0.1% against the euro to 1.1668.
The price of Brent crude oil tumbled by 3.42% to 74.56 US dollars per barrel.
In company news, shares in Tui leapt by more than a 10th after the travel firm told investors it had seen record-high sales exceeding 20 billion euros (£17 billion) for the first time.
Bookings for the winter season were higher than last year, even as average prices have risen, and the firm is already anticipating a strong summer season next year.
Shares in the company surged by 14.9% following the sunny update.
Elsewhere, British American Tobacco saw its share price decline after it revealed a £25 billion impairment charge on some of its cigarette brands.
The maker of Dunhill and Lucky Strike said the charge was related to the challenges facing the traditional cigarette market, and its decision to shift towards products like e-cigarettes in the future.
Shares in the FTSE 100-listed firm slumped by 8.3% at close.
The biggest risers on the FTSE 100 were BT Group, up 6.4p to 136.65p, IAG, up 6.1p to 161.9, Croda International, up 171p to 4,715p, Prudential, up 30.6p to 884p, and Legal & General, up 7.7pp to 235.7p.
The biggest fallers on the FTSE 100 were British American Tobacco, down 208p to 2,279.5p, Shell, down 36p to 2,490p, Diageo, down 38p to 2,774.5p, BAE Systems, down 13.5p to 1,031p, and BP, down 5.95p to 465.95p.