The FTSE 100 rebounded today after suffering losses for two consecutive sessions. Gains in shares of pharmaceutical giant GSK and gold mining companies helped lift the market, even as investors watched the upcoming Bank of England rate decision closely.
Economists surveyed by Reuters unanimously predict that the base rate will drop by a quarter percentage point to 4.5% this week, a move that traders have fully anticipated.
The index finished 0.6% higher, with the more domestically oriented mid-cap FTSE 250 also recording an increase of 0.5%.
GSK saw its share price soar by 7.6% following the announcement of a £2bn share buyback and an upgrade to its long-term sales forecast.
At the same time, gold miners experienced a robust rally of 3.6%, buoyed by gold prices reaching new record levels.
Market participants are eagerly awaiting the Bank of England’s monetary policy announcement on Thursday, with expectations firmly set on a 0.25 percentage point rate cut.
Geoff Yu, a senior market strategist at BNY, commented, “We anticipate the BoE to implement a quarter of a percentage point rate cut, and we expect the easing guidance to be more pronounced than current market expectations. Given the prevailing downside growth risks, at least one quarter point cut per quarter appears likely.”
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