London markets climb after European Central Bank rate cut
London’s top index finished 38.39 points, or 0.47%, higher to end the day at 8,285.34.
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Your support makes all the difference.The FTSE 100 was higher amid a boost from the European Central Bank (ECB) opting to cut interest rates.
The central bank cut interest rates to 3.75% in its first reduction since 2019, despite slightly increasing its inflation outlook for the year.
London’s top index finished 38.39 points, or 0.47%, higher to end the day at 8,285.34.
The main markets in continental Europe were higher as a result, with consumer companies particularly strong amid hopes it could support improved spending.
The German Dax index was up 0.38% at the close and the Cac 40 in France ended up 0.42%.
Stateside, the main indexes opened higher after receiving a lift from AI chipmaker Nvidia’s continued share rally.
Chris Beauchamp, chief market analyst at IG, said: “Stocks on both sides of the Atlantic are up this afternoon, buoyed by a second central bank cutting rates and the fresh surge in Nvidia’s stock price.
“The ECB joined the Bank of Canada in cutting rates this week, but it was in no hurry to hint at further cuts.
“Recent inflation data has put paid to any idea of a consecutive move in July, but September could still see a cut as the bank looks to jump start the eurozone economy.”
Meanwhile, sterling was slightly lower against the euro and dollar following the rate cut decision.
The pound was down 0.03% at 1.278 US dollars and was down 0.09% at 1.174 euro at market close in London.
In company news, Mitie shares were in the red despite the outsourcer posting record-high annual sales.
Mitie said its revenues jumped by 11% to £4.5 billion over the year to the end of March, compared with £4.1 billion generated the previous year.
Shares finished the session down 1.67% at 118p.
Simply Be and Jacamo-owner N Brown jumped in value after the fashion firm returned to profit for the past year.
The retailer swung to a pre-tax profit of £5.3 million for the year, having recorded a £71 million loss the prior year, and told investors it had also shored up its balance sheet.
As a result, N Brown shares were up 33.8% to 20p at the end of trading.
John Wood Group shares made strong gains after the oilfield services business told shareholders it will engage in takeover talks with Sidara, the Dubai engineering firm seeking to buy the London-listed group.
Shares in the company finished 8% higher at 200.8p.
Vodafone was the heaviest faller on the FTSE 100, with shares falling 5.8% to 72.2p after the telecoms group’s stock went ex-dividend.
The price of oil continued its recent shaky spell, followed up its tentative gains on Wednesday with another increase but remained lower for the past week.
A barrel of Brent crude oil was up by 1.58% to 78 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were Antofagasta, up 63p to 2214p, Fresnillo, up 15.5p to 593p, Sage Group, up 25p to 1063.5p, Diageo, up 56p to 2712.5p, and Natwest Group, up 6.4p to 318.8p.
The biggest fallers on the FTSE 100 were Vodafone, down 4.44p to 72.2p, National Grid, down 37.6p to 864p, WPP, down 27.8p to 778.8p, easyJet, down 14.2p to 473.1p, and Sainsbury’s, down 6.4p to 267.6p.