By Ankita Yadav (Reuters) -London's main stock indexes rose on Thursday, as signs of a cooling labour market assured investors that the Bank of England would likely cut interest rates by August. The
FTSE indexes close higher, helped by earnings and data
By Ankita Yadav
(Reuters) -The UK's main stock indexes closed higher on Thursday, helped by positive corporate updates, while data suggested the labour market was cooling less than had previously been feared.
The blue-chip FTSE 100 rose 0.5%, while the midcap FTSE 250 index added 0.8% to close at a more than three-year high.
Ocado jumped 18.5%, leading gains in the midcap index, as the online supermarket and technology group reported a 76.5% rise in underlying earnings in its first half and said the priority is to turn cash positive in the next financial year.
Data showed British pay growth slowed in May and employee numbers dropped further last month, but the cooling in the labour market that had alarmed some policymakers appeared less acute than previous figures had suggested.
It follows Wednesday's report that showed inflation in June rose to its highest since January 2024 at 3.6%.
"Although inflation came in hotter-than-expected, the Bank of England is expected to focus instead on the deteriorating growth outlook and jobs market weakness," said Victoria Scholar, head of investment at Interactive Investor.
Traders were pricing in a 77% chance of a 25 bps rate cut next month, easing slightly from 80% the day before.
British stocks have rallied this year, pushing the FTSE 100 to all-time highs earlier this week as hopes of interest rate cuts, optimism over the UK-US trade deal as well as a surge in commodity prices lifted sentiment.
Among other stocks, EasyJet fell by 4.9% as the low-cost carrier said a strike by French air traffic controllers earlier this month and rising fuel costs would hit its annual profit.
Shares of technical products and service distributor Diploma jumped 6.4% to an all-time high after it upgraded its full-year organic revenue growth.
Coats Group slumped 12.3% to the bottom of the midcap index after the thread manufacturer said it would buy U.S.-based footwear insole maker OrthoLite for $770 million, including debt.
(Reporting by Ankita Yadav in Bengaluru; Editing by Shinjini Ganguli and Barbara Lewis)
