© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo
By Shashwat Chauhan
(Reuters) -The UK’s rose on Tuesday on persisting hopes of interest rate cuts from the U.S. Federal Reserve and a dovish Bank of Japan (BOJ), though slipping energy stocks kept a lid on gains.
The blue-chip FTSE 100 gained 0.1% as of 0933 GMT, while the more domestically focussed midcap index added 0.5%.
Rate-sensitive real estate, real estate investment trusts and homebuilders were among the top gainers, rising between 0.6% and 0.8%.
Christopher Peters, trading floor manager at Accendo Markets said the consistent hopes of interest rate cuts in the United States drove gains across Britain’s equity markets on Tuesday.
San Francisco Fed President Mary Daly said cuts to the U.S. central bank’s benchmark rate are likely to be appropriate next year because of an improvement in inflation this year, the Wall Street Journal reported.
“The BOJ holding interest rates where they were this morning is potentially another positive driver for that rhetoric,” added Accendo Markets’ Peters.
The BOJ maintained ultra-loose policy settings in a widely expected move.
Keeping a lid on gains, heavyweight energy stocks dipped 0.6% after rising more than 1% in the previous session and as crude prices slipped. [O/R]
Focus will remain on economic data, leading with the UK and the U.S. inflation prints this week, while a euro zone reading is due later in the day.
Data on Wednesday is expected to show headline inflation in Britain to come in at 4.4% year-on-year in November against last month’s reading of 4.6%.
Among individual stocks, Superdry dropped 15.9% after the British fashion retailer flagged a hit to annual profits as sales were “significantly below” the management’s expectations.
De La Rue (LON:) kept its annual forecast unchanged and reported half-year profit in line with its expectations. Shares of the banknote maker fell 7.4%.
