London – The FTSE 100 index nudged higher on Thursday, gaining 0.51% to finish at 10,742.81 points by 10:34 GMT. The modest advance came after the U.S. Federal Reserve raised its benchmark interest rate by 25 basis points, a move that markets had largely priced in.
Key market moves
Blue‑chip retailer Next led the gains, up 0.82% after the company raised its annual pre‑tax profit outlook for the fourth time this year, adding £12 million to its guidance and targeting £1.255 billion in profit. Mid‑cap FTSE 250 stocks also rose, climbing 0.42%.
Pharmaceutical giant AstraZeneca saw its shares rise about 1% after its Chinese unit announced an investment of nearly 200 million yuan to upgrade production facilities in Wuxi, signaling confidence in the region’s manufacturing capabilities.
Precious‑metals stocks rallied, with gold‑related miners Pan African Resources and Endeavour Mining up 4.5% and 1% respectively, as the Fed’s tightening lifted gold prices.
Bank of England in the spotlight
All eyes are now on the Bank of England, which is expected to keep interest rates steady later in the day. Traders remain wary of any hint that high energy prices could force a November hike. Market data compiled by LSEG shows expectations that rates could rise by at least 43.5 basis points before year‑end.
“The BoE cannot hike rates into what’s chiefly a supply shock – this is not 2022 and it’s not the US, where the economy is much stronger and benefitting from the AI boom,” said Saxo UK Investor Strategist Neil Wilson in a note.
Broader economic backdrop
The Fed’s decision follows a recent surge in oil prices, driven by ongoing conflict in the Middle East that has stoked inflation worldwide. The central bank signaled that one more rate increase may be on the horizon, with newly appointed Governor Kevin Warsh joining a unanimous vote for the current hike.
In the UK, budget‑friendly carrier Wizz Air climbed 2.4% after outlining medium‑term financial targets, including a goal of €10 billion in annual revenue and an upgraded revenue‑per‑available‑seat‑kilometre forecast for the second quarter.
Construction firm Galliford Try surged 3.8% after reporting a 24% jump in annual profits, driven by higher project activity and disciplined cost control.
What this means for investors
For UK investors, the FTSE’s modest rise suggests resilience amid global monetary tightening. While the Fed’s hike adds pressure on borrowing costs, the market’s focus on the BoE’s upcoming decision underscores the importance of domestic monetary policy in shaping corporate earnings and consumer confidence.
Analysts note that a steady BoE rate could provide stability for businesses like Next and Wizz Air, which rely on predictable financing costs to fund expansion and operational upgrades.
Overall, the market’s reaction reflects a balanced view: confidence in strong corporate fundamentals tempered by caution over potential future rate moves.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
