Global rally lifts London stocks ahead of BoE decision

Miners rose 2.6%, tracking metal prices higher, after the U.S. Fed tempered market expectations for an aggressive tightening path. Financials such as banks and insurers , which tend to benefit from a higher interest rate environment, gained 1.2% and 1.9%, respectively.

UK shares rose on Thursday after the U.S. Federal Reserve's widely expected rate hike triggered a relief rally in global markets, with investors focusing on the Bank of England's meeting amid concerns over Britain's cost-of-living crisis. The Bank of England looks poised to raise interest rates later in the day for the fourth time since December, the fastest increase in borrowing costs in a quarter of a century, as the central bank tries to quell inflationary pressures.

The blue-chip FTSE 100 index was up 1.6%, as of 0710 GMT. Miners rose 2.6%, tracking metal prices higher after the U.S. Fed tempered market expectations for an aggressive tightening path.

Financials such as banks and insurers, which tend to benefit from a higher interest rate environment, gained 1.2% and 1.9%, respectively. Adding to the rally, Shell jumped 3.5% after the oil major posted a record profit in the first quarter, boosted by higher oil and gas prices and the strong performance of its trading division.

 

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