London stocks track global markets higher

UK equities moved higher on Friday, mirroring gains across global markets, as investors cheered signs of slowing inflation in the United States, while shares of broadcaster ITV topped the mid-cap index on BritBox International stake sale to BBC. The internationally focussed FTSE 100 index was up 0.7%, as of 0916 GMT.

UK equities moved higher on Friday, mirroring gains across global markets, as investors cheered signs of slowing inflation in the United States, while shares of broadcaster ITV topped the mid-cap index on BritBox International stake sale to BBC.

The internationally focussed FTSE 100 index was up 0.7%, as of 0916 GMT. Global markets tracked a rally on Wall Street after the U.S. personal consumption expenditures (PCE) price index data showed that the annual increase in inflation was the smallest in three years, raising hopes of a rate cut from the Federal Reserve in the first half of the year.

The rate-sensitive real estate investment trusts index climbed 1.7%, while telecommunications led sectoral advances with a 1.9% jump. "There's a buoyancy linked to the fact that the interest rate cycle may not be going back down fast, but it's certainly not going up again either," said Wes McCoy, UK equity fund manager at Abrdn.

Among stocks, Pearson advanced 4.8% to be among the top performers in the FTSE 100 after the education company met market expectations for 2023 operating profit, which rose 31% on an underlying basis. The more domestically oriented FTSE 250 gained 0.6%, led by a 14.3% rise in ITV after the broadcaster sold its entire 50% stake in streaming service BritBox International to its joint venture partner BBC Studios for 255 million pounds ($322.09 million).

Rightmove bucked the broader trend to move 4.4% lower after the property portal said it expected its customer numbers to fall in 2024 due to macroeconomic uncertainties. British investors' focus will now shift to Finance Minister Jeremy Hunt's pre-election budget due next week, where he is expected to cut taxes in the face of a 2.5-trillion-pound debt.

Meanwhile, British house prices in February rose in annual terms for the first time in more than a year, according to mortgage lender Nationwide Building Society, the latest sign of a recovery in the housing market after a dip in mortgage costs.