Thu Sep 12 07:50:44 UTC 2024: ## FTSE 100 Soars to One-Week High on Rate Cut Hopes

**London, UK** – The FTSE 100 index surged to its highest level in over a week on Thursday, fueled by a renewed appetite for risk after indications of an upcoming interest rate cut by the U.S. Federal Reserve. The blue-chip index closed 0.6% higher, while the mid-cap FTSE 250 gained 0.8%, also marking a one-week high.

The prospect of a rate cut, widely expected at the Fed’s Sept. 17-18 meeting, boosted precious metal prices, with miners enjoying a six-day winning streak after gold reached record highs. The CME FedWatch tool currently estimates an 85% chance of a 25-basis-point cut next week.

Other sectors also saw gains, with industrial metal miners rising 2.4% on strong copper prices, driven by signs of increased demand in China and the anticipated rate cut. Homebuilders added 1.9% after a survey indicated continued growth in UK property sales. The beverages sector climbed 2.5%, driven by a rating upgrade and price target increase for Diageo.

However, pharmaceutical and biotech shares took a hit, dropping 1.8% to become the biggest sectoral decliners.

On the mid-cap index, Trainline topped the leaderboard with a 9.2% surge after announcing an expected core profit exceeding previous forecasts. In contrast, Fevertree Drinks fell 11.6% following a revised downward forecast for annual revenue growth.

Across the Atlantic, the European Central Bank followed through with a widely anticipated 25-basis-point cut to its deposit rate, bringing it down to 3.50%. This move echoes a similar cut implemented in June as inflation and economic growth slowed. Meanwhile, the Bank of England is expected to keep rates unchanged at its meeting later this month.

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