FTSE Indexes Surge Amid Defence Stock Gains and Economic Optimism

The FTSE indexes in Britain saw gains led by defence stocks, driven by geopolitical tensions and optimism for a potential rate cut by the Bank of England. Meanwhile, Aston Martin shares fell due to projected losses, while Anglo American posted a significant loss but saw shares rise due to higher metal prices.

Britain's FTSE indexes experienced a boost on Friday, backed by rising defence stocks and positive expectations regarding a potential interest rate cut by the Bank of England in March. The easing concerns over AI disruption also lifted investor sentiment globally.

The blue-chip FTSE 100 climbed 0.6% by 1134 GMT, nearing a record high, while the FTSE 250 focused on domestic markets, increased by 0.5%. In light of tensions between Iran and the U.S. and strengthened European defence cooperation, defence stocks saw a 6% increase this week.

Meanwhile, Aston Martin shares declined by 1.4% after warning of increased annual losses and plans to sell naming rights of its F1 Team to support finances. The auto sector saw a 1.4% dip. Conversely, Anglo American reported a $3.7 billion loss but marked a 1.3% rise in shares due to favorable metal prices.

(With inputs from agencies.)