European Stocks Rise as Fed Cuts Rates, Attention Shifts to BoE

London stocks rose alongside European markets after the U.S. Federal Reserve cut interest rates. The FTSE 100 and UK's midcap index saw gains, with RELX and Rolls-Royce leading. The BoE's rate decision is anticipated, expected to maintain rates at 4%. Inflation remains a concern for policymakers.

London stocks advanced on Thursday as European markets followed the U.S. Federal Reserve's decision to lower interest rates for the first time this year. The central bank's move by 25 basis points sent positive ripples across global markets.

The FTSE 100 gained 0.4% by 0915 GMT, driven by strong performances from business information group RELX and aircraft engine maker Rolls-Royce. The UK's midcap index also saw a 0.3% increase, bolstered by Jupiter Fund Management's 13.1% surge following an upgrade by Peel Hunt. Meanwhile, luxury firm Burberry surged 3.1% amid a 1.9% overall gain in the personal goods sector.

Attention now turns to the Bank of England's rate verdict, with economists expecting the rate to remain steady at 4% amid persistent inflation. Despite a promising 14% profit report, fashion retailer Next dropped 4.2%, and Pets at Home fell 14.4% after revising profit forecasts and announcing a CEO departure.

(With inputs from agencies.)