FTSE 100 hits six-week high as ECB signals end to rate hikes
FTSE 100 hit its highest in six weeks on Thursday after the European Central Bank signalled an end to its monetary tightening cycle, while industrial metal miners led the gains after a surge in iron ore prices.
The exporter-heavy FTSE 100 index rose the most in over 10 months, soaring 2.0%. The midcap index mirrored the moves and was up 1.8%.
The European Central Bank raised its key interest rate to a record high of 4% on Thursday but, with the euro zone economy in the doldrums, signalled that the hike, its 10th in a 14-month-long fight against inflation, was likely to be its last.
«The focus is now shifting from how high policy rates get to how long they stay there,» said Ann-Katrin Petersen, Senior Investment Strategist at the BlackRock Investment Institute.
«We see inflation remaining sufficiently high that the ECB will not cut until well into 2024 amid a tight labour market and subdued productivity.»
Boosting sentiment, data from U.S.
