FTSE 100 Inches Higher as Markets Eye Fed Rate Decision
London's FTSE 100 advances modestly as investors await Federal Reserve decisions and crucial U.S. economic data, while construction sector continues to show weakness amid economic uncertainties.
UK Markets Show Modest Gains Amid Rate Cut Expectations
London's benchmark FTSE 100 edged higher on Thursday, as investors positioned themselves ahead of crucial U.S. economic data and anticipated Federal Reserve policy shifts. The index climbed 18.72 points or 0.2% to 9,196.71, continuing the recent positive momentum in UK markets.
Retail and Media Stocks Lead Gains
Next emerged as the session's standout performer, advancing 2.5%. Other notable gainers included WPP, Associated British Foods, and Auto Trader Group, each posting gains exceeding 2%. The broad-based rally suggests growing investor confidence despite global economic uncertainties.
Aviation Sector Faces Headwinds
The aviation sector faced significant pressure, with budget airline Jet2 plunging 13.5% after warning that earnings would likely fall towards the lower end of market expectations. EasyJet shares also declined more than 3%, highlighting broader concerns about the travel industry's outlook.
Construction Sector Shows Continued Weakness
Latest data from S&P Global revealed that the UK construction sector remained in contraction territory for the eighth consecutive month. The Construction PMI registered at 45.5 in August, improving slightly from July's 44.3 but still well below the crucial 50-point threshold.
"Construction activity has decreased throughout the year-to-date, marking the longest continuous downturn since early-2020," noted Tim Moore, Economics Director at S&P Global Market Intelligence.
The persistent weakness in construction activity echoes broader concerns about the UK's economic resilience, as highlighted in recent analysis of market trends across various sectors.
Thomas Reynolds
Correspondent for a London daily, specialist in British foreign policy and transatlantic issues.