London’s blue-chips pushed higher on Thursday morning, with the FTSE 100 up 0.9% and the FTSE 250 adding 0.3%, tracking gains across Europe where the DAX rose 0.7%, the CAC 40 0.5% and the Stoxx 50 0.8%.
Markets are digesting last night’s Federal Reserve decision, with the central bank delivering its first rate hike since 2023, moving the target to 3.75-4% range.
Attention now turns to the Bank of England’s own rate call at midday. In a note, ING highlighted that UK inflation has climbed back above 3%, with energy costs potentially pushing it to 3.6-3.7% this winter, but it said “there’s nothing in the latest data that screams a need to hike” ahead of the BoE decision.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Spot gold has jumped 1.3% to $4,319/oz and silver has risen 1.5% to $63.93 following the FOMC decision, while oil slipped as Brent fell 1.9% to $103.86 and WTI dropped 1.5% to $100.89, with reports stating US President Trump said the US is “hopefully toward the end” of its war with Iran.
In corporate news, Next rose 2.3% after strong half-year results, upgraded profit guidance and a 98p interim dividend.
Bytes Technology surged 8.2% in the FTSE 250 after upgrading full-year guidance, with gross profit growth now seen in the low-to-mid teens.
Drax also lifted its 2026 EBITDA outlook following its Bluefield Solar acquisition. Galliford Try announced a £15m buyback alongside final results.
Elsewhere, IAG (+1.24%) and GSK (+1.18%) featured among FTSE 100 gainers, while Vodafone (-0.88%) and Marks & Spencer (-0.86%) lagged. In the FTSE 250, Aston Martin (+5.98%) and Man Group (+4.99%) rallied, while Avon Technologies (-4.58%) and Foresight Group (-4.41%) fell back.
