London’s FTSE 100 climbed on Thursday as defensive healthcare and beverage stocks lifted the index, while traders held back ahead of a U.S. payrolls report that could shape the Federal Reserve’s next move. Dovish signals from central bankers offset weaker oil prices tied to easing tensions around the Strait of Hormuz.
London’s FTSE 100 rose 0.5% to 10,532.93 points by 1153 GMT, while the midcap FTSE 250 slipped 0.2%. Investors awaited a U.S. non-farm payrolls report due at 8:30 a.m. ET, for clues on the health of the labour market and the Fed’s policy path.
Healthcare and consumer names lead the gains
The healthcare sub-index rose 1.4%, boosted by AstraZeneca, which gained the same amount after striking a deal worth up to $1.77 billion with China’s CSPC Pharmaceutical Group to develop kidney disease treatments. Consumer-focused stocks joined the advance, with Tesco, Coca-Cola HBC and J Sainsbury each rising between 2.6% and 1.8%.
Not every name moved higher. British electricals retailer Currys fell 3.7% after warning that a global memory-chip shortage could push up prices for smartphones, laptops and other electronics later this year. Genel Energy, by contrast, rose 4.6% after the Kurdistan-focused producer agreed to buy Britain’s Capricorn Energy in a $360 million all-cash deal.
Central bankers strike a dovish tone
The gains came as policymakers at the Sintra forum signalled little appetite for further tightening. Federal Reserve Governor Kevin Warsh, ECB President Christine Lagarde and BoE Governor Andrew Bailey all struck a dovish tone, and Sterling firmed to 1.3304, up 0.20%. Economists still expected the payrolls report to keep a September interest rate hike on the table amid rising inflation from the U.S.-led war with Iran.
Oil slides as Hormuz fears ease
Iran and the U.S. concluded a round of indirect talks in Doha on Wednesday without a clear breakthrough, yet oil prices fell as supply concerns around the Strait of Hormuz eased. Brent crude fell to $70.35 a barrel, down 1.7%, while WTI dropped 2% to $67.24.
Sources: Reuters, Investing.com
Trading involves risk.
Risk Disclaimer
