FTSE 100 Gains After Fed's Dovish Rate-Cut Signal

The FTSE 100 rose 1.3% to 7,648.98 points on the back of the U.S. Federal Reserve's pivot toward rate cuts last night, and despite of push-back on following a similar rate cut outlook from the Bank of England and the European Central Bank. "The FTSE 100...has managed to dodge some of this push-back, helped in some part by the sharp falls in yields which are helping to provide a lift to the commercial real estate and housing sector," CMC Markets UK analyst Michael Hewson says in a market comment. Retailers, miners and house builders are among today's main risers, with online grocer Ocado's stock increasing 12%.

COMPANIES NEWS:

Capita PLC 11-Month Revenue Rises; Backs Medium-Term Guidance

Capita PLC said adjusted revenue for the first 11 months of the year rose 2.1% and that it is on track to meet medium-term guidance.

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Currys Sales Fall by Less Than Expected Despite Consumer-Spending Pressure

Currys reported a lower-than-expected decrease in sales in the first half of fiscal 2024 despite consumer spending remains under pressure.

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Serco Sees 2023 Revenue in Line With Views

Serco Group said Thursday that it expects revenue to rise this year in line with guidance, and revenue to be flat next year.

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Serco Group Acquires European Homecare for EUR40 Mln

Serco Group said that it has agreed to acquire European Homecare-- the provider of immigration services to public sector customers in Germany--from Korte-Stiftung for 40 million euros ($43.5 million).

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Thames Water Appoints Chris Weston as CEO

Thames Water Utilities said that it has appointed Chris Weston as chief executive officer from Jan. 8, replacing Sarah Bentley who resigned in June.

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Bunzl Flags 2023 Revenue Decline But Expects Growth Next Year

Bunzl said it expects 2023 group revenue to decline but sees growth next year despite the uncertain economic environment.

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Rolls-Royce in Talks to Sell Lower-Power-Range Engines Business

Rolls-Royce Holdings said it is in talks to sell its lower-power-range engines business to Deutz for a price in the high double-digit million euros.

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Hochschild Mining Nonexecutive Director Ignacio Bustamante to Be Succeeded by Jorge Born

Hochschild Mining said nonexecutive Director Ignacio Bustamante will be stepping down from the board on Dec. 31 and that he will be succeeded by Jorge Born.

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SThree Net Fees Fall After Trimming Back Permanent Business

SThree said its fiscal 2023 performance was in line with market expectations despite a decline in its top three countries after reducing the average headcount at its permanent business.

MARKET TALK:

FTSE 100 Jumps 2% After Fed's Rate-Cut Signal, Ahead of BOE Decision

1041 GMT - The FTSE 100 surges more than 2% to its highest since late September at 7724.76 after the U.S. Federal Reserve offered prospects of interest-rate cuts next year as it kept rates steady, and before a Bank of England decision at 1200 GMT. "There is enthusiasm in the air that the punishing rate hikes of the last two years will start being reversed, sooner rather than later," writes Susannah Streeter, head of money and markets at Hargreaves Lansdown. The BOE is expected to hold rates at 5.25% but markets increasingly expect rate cuts in 2024 after U.K. GDP contracted in October, she says. Retailers, miners and house builders are among the main risers. Online grocer Ocado tops gainers, jumping 8.9%. ([e-mail])

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BOE Rate Cuts Expected at Slower Pace

1040 GMT - Markets are pricing in a slower pace of rate cuts from the Bank of England relative to the Fed and European Central Bank, Deutsche Bank economist Jim Reid notes, ahead of the central bank's meeting later Thursday. The inflation situation in the U.K. remains comparatively worse than peers, he says, with inflation at 4.6% in October, compared with November readings of 3.1% and 2.4% in the U.S. and the eurozone respectively. Indeed there is an expectation of a split vote at Thursday's BOE meeting, with three of the nine members seen continuing to vote in favor of another 25 basis points hike, Reid says. Markets are pricing in just 35 basis points of cuts by the BOE's June meeting, and risks of a delay to cuts are mounting, he adds. ([e-mail])

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U.K. Gilt Yields Fall Ahead of BOE Meeting

1021 GMT - U.K. gilt yields decline before a Bank of England decision at 1200 GMT. Rates are expected to be kept at 5.25% but rate-cut expectations for 2024 are increasing after data this week showed wage growth weakening and a bigger-than-expected GDP contraction in October. Given this, it wouldn't be surprising to see one BOE policymaker, perhaps Swati Dhingra, vote for a rate cut on Thursday, Mizuho rates strategist Evelyne Gomez-Liechti says in a note. Markets fully price a first BOE rate cut in May and price a strong possibility for March, Refinitiv data show. The 10-year gilt yield falls 15 basis points to 3.680% while the 2-year gilt yield falls 16bps to 4.214%, Tradeweb data show. ([e-mail])

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(END) Dow Jones Newswires

12-14-23 1233ET