- Travis Perkins falls, warns of downbeat profit
- ASOS extends gains, RBC raises PT
- UK inflation data, BoE rate decision due next week
- BOJ maintains ultra-low rates
- FTSE 100 up 0.8%, FTSE 250 adds 0.4%
June 16 (Reuters) – UK’s benchmark FTSE 100 climbed in a broad-based rally on Friday, while a decline in top building materials supplier Travis Perkins following a profit warning capped the advance in the mid-cap 250 index.
The resource-heavy FTSE 100 (.FTSE) was up 0.8% at 0845 GMT. The export-oriented benchmark index was on track for a weekly gain after three straight weeks of losses, underpinned by miners and a weak sterling .
Miners (.FTNMX551020) have gained over 6% this week tracking higher metal prices on a weaker dollar and bets of more stimulus measures in top consumer China.
Investors keenly await domestic inflation data and a 25-basis-point rate hike from the Bank of England next week following a similar-sized increase by the European Central Bank and a hawkish pause from the U.S. Federal Reserve this week.
Analysts at Deutsche Bank expect the BoE’s monetary policy committee to focus on economic growth, stubborn price pressures, and wage growth in the June policy meeting.
“Inflation will continue to remain volatile and skewed to stronger prints in the near-term… and the labour market will also likely remain hot in the very near-term,” they added.
Meanwhile, investors also drew comfort from the Bank of Japan’s decision to maintain ultra-easy monetary policy and remain a dovish outlier among global central banks.
The FTSE 250 (.FTMC) mid-cap index was up 0.4%.
ASOS (ASOS.L) jumped 5.4%, extending gains from the previous session on a return to profitability, with RBC raising its price target on the online fashion retailer.
Reporting by Ankika Biswas in Bengaluru; Editing by Sherry Jacob-Phillips and Shailesh Kuber
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