Major UK stock indices rose on Thursday on signs that the US Federal Reserve may ease its aggressive stance on interest rate hikes, while Dr Martens fell after the shoemaker warned of demand weaker ahead of the busy Christmas season.
The blue-chip FTSE 100 rose 0.3% in tight trading as US markets were closed for the Thanksgiving holiday.
Wall Street ended higher on Wednesday after minutes from the Fed’s November meeting showed policymakers agreed it would “probably soon be appropriate” to slow the pace of interest rate hikes.
“I think the takeaway is that maybe we’re at the beginning of a more dovish narrative from the Fed and going forward there’s hope that the dovish narrative will pick up momentum,” said Stuart Cole, chief macroeconomist at Equiti Capital.
The domestically focused FTSE 250 mid caps rose 0.7%, also reflecting optimism in equity markets.
A weak spot was Dr Martens, which fell 20% and looked set for its biggest percentage drop ever, after warning that its base annual profit margin would be lower than last year.
UK stock markets have rallied strongly since a botched mini budget rattled sentiment in October, with investors hoping the new government’s measures will help build confidence even as Britain faces what is expected be a long recession.
UK energy regulator Ofgem said its
price cap
as average household energy bills would increase by around 21% to 4,279 pounds ($5,172) per year from January to the end of March 2023.
Among other stocks, United Oil & Gas fell 21.5% after the oil and gas exploration company cut its full-year production forecast for its Abu Sennan license.
Shares of Vodafone, Imperial Brands and National Grid fell as they traded without the right to dividend payments. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Maju Samuel and Anil D’Silva)
