CORRECTED-FTSE 100 hovers near 2-month high as BoE rate cut prospect hits pound

London's blue-chip stocks jumped to a near two-month high on Friday, with the biggest support from its globally-exposed components as sterling took a hit after the Bank of England's first clear signal that it was looking at a rate cut. The FTSE 100 index rose 0.8% at 0717 GMT to levels not seen since Aug. 2 and set to cap off the week on a surprisingly positive note despite growing political tensions. The FTSE 250 added 0.5%.

Hopes that a long drawn-out Sino-U.S. trade war might be nearing a solution also helped sentiment after China said it was in close communication with the United States over trade talks next month. Among stock moves, Britain's second-largest homebuilder Persimmon inched up 1% after brokerage Jefferies said Brexit risks were overplayed in the sector and upgraded the stock.