UK's FTSE 100 hits near one-month high after Healey backs fiscal discipline
EWU•The FTSE 100 rose 0.54% to 10,782.98, its highest since September 18, after Finance Minister John Healey reaffirmed fiscal discipline and August GDP grew 0.1%, against expectations of a 0.1% decline.
1. Stocks climb on fiscal stance
London's FTSE 100 reached a near one-month high, led by financials, after John Healey said the government remained committed to fiscal discipline. The FTSE 250 edged down 0.07%, while the UK's 10-year bond yield declined to 5.34%.
2. Banks and companies diverge
NatWest Group rose 2.3% and Standard Chartered gained more than 1%. British American Tobacco rose 2.6%, while miners fell 3.1% as copper prices weakened. British Land gained 2.6% after forecasting higher half-year profit; Antofagasta fell 5.8% after year-on-year lower third-quarter copper production. Midcap e-commerce group THG surged 18% after raising its annual profit forecast, while Workspace slipped 5.6% after reporting lower quarterly occupancy.
3. GDP and rate outlook
UK GDP grew 0.1% in August, versus expectations for a 0.1% contraction. Bank of England Chief Economist Huw Pill said a future rate increase should not be taken as the start of a prolonged series of hikes. Economists polled by Reuters expected the BoE to raise rates to 4% in November but narrowly expected it to hold thereafter.
