The FTSE 100 had another steady, if uninspiring, session on Friday, trading marginally higher ahead of a big week for monetary policy.

With the index up just 0.1% at the time of writing, the FTSE 100 looked set to close the week out with minor gains.

This will be acceptable to most investors as it appears to draw a line under the volatility experienced in November as markets shift focus to the Fed’s interest rate decision next week and a possible Santa rally.

Investors will be given further clarification on the Fed’s likely path later today when the US PCE is released.

“The market is increasingly betting on an interest rate cut when the Federal Reserve meets on 10 December and mixed employment data this week has done little to dampen those expectations which, in turn, have helped drive recent gains for equities,” explained AJ Bell investment director Russ Mould.

“The Core PCE measure of inflation, out later, is one of the most closely followed by the Fed when making its decisions on rates because it excludes more volatile items like food and energy.

“A higher-than-expected reading could give the Fed pause for thought about a pre-Christmas cut, while an in line or lower number would likely give markets further confidence about such a move.”

3i was the FTSE 100’s top riser, up 3%. Burberry and Melrose, rising between 2.8% and 3.0%, weren’t far behind.

Unilever shares were marginally higher after confirming the spin-out of its ice cream is complete and will begin trading on Monday. 

“This completes an important part of the company’s turnaround programme, launched in 2024 by former chief executive Hein Schumacher and continued under his successor Fernando Fernandez,” Mould said.

“Unilever’s strategy has involved job cuts and other efficiencies as well as a focus on its so-called Power Brands which account for more than 75% of revenue. These include household names like Hellmann’s, Knorr and Domestos.”

BP was the FTSE 100’s top loser, giving up 3% as oil prices weakened.

1Spatial has secured a major contract to support the next phase of the National Underground Asset Register (NUAR), upgrading from its previous role to become prime contractor for the project’s Data Transformation and Ingestion Service.

The global Location Master Data Management software leader will work in partnership with Ordnance Survey Ltd under a contract worth £4.2m, including £1.5m in licence revenue. The initial two-year term includes the option to extend for a further three years.

NUAR is a Government Digital Service initiative creating a single digital map of underground pipes and cables across England, Wales and Northern Ireland. The programme transforms and ingests data from over 600 asset owners, including utility companies and local authorities.

1Spatial’s Data Platform processes this information, enabling hundreds of asset owners to seamlessly upload and transform their data with efficiency.

The system makes information instantly available 24/7, replacing the current process in which work on buried infrastructure requires contacting multiple organisations and waiting an average of 6 days for information.

“We are delighted to continue our collaboration with Ordnance Survey Ltd on this nationally significant project, validating the strength of our product offering,” said Claire Milverton, CEO of 1Spatial.

“The renewal and upgrade of our role highlight our position as a trusted partner in delivering innovative geospatial solutions that create long-term value for government, industry and the public.

“NUAR will become one of the most comprehensive underground asset datasets globally and a high-profile example of data integration at scale, with our platform transforming fragmented records into a consistent, validated dataset. The complexity of harmonising thousands of datasets represents a strong barrier to entry to other vendors and with similar initiatives emerging internationally, we are strongly positioned to leverage the strength of our technology platform worldwide.”

The FTSE 100 underperformed Europe again on Thursday as weaker miners dragged on the index.

London’s leading index was flat at the time of writing after trading sideways for most of the session. The losses and gains were marginal but disappointing, considering the German DAX was 0.9% higher.

The FTSE 100 was also unmoved by hopes of a US rate cut that encouraged further buying of US stocks overnight. The S&P 500 closed 0.3% to the good and within touching distance of all-time record highs.

“US stocks pushed through some early jitters, closing higher again, reinforcing the sense that momentum is back as rate-cut expectations firm up,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Investors are leaning into the idea that easier policy is coming, which is fuelling appetite for risk and lifting everything from blue chips to small caps. Still, with inflation data and Fed decisions ahead, the path is far from set in stone. Expectations have swung wildly over the past month, so assuming any cuts are a done deal could be a costly mistake, and volatility can just as quickly return if the rate cutting narrative shifts. One thing’s clear, if markets want a Santa rally, they need the Fed to stay in line.”

Precious metals miners were the biggest losers on the day as gold prices retreated again. Endeavour Mining lost 2.4%.

Rio Tinto was marginally higher and outperforming its mining sector peers as the CEO outlined a new strategy to make a ‘Stronger, sharper and simpler Rio Tinto’.

“Rio Tinto’s recently appointed commander in chief Simon Trott is today unveiling his master plan to investors. There are some bold ambitions here, which if achieved should put the mining giant on a firmer footing,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“Cost reductions and further diversification away from iron ore into future facing metals such as lithium and copper are all on the table. These measures have the potential to grow underlying cash profit by up to 50% by the end of the decade. However, the path to getting here won’t be easy with nearer term guidance looking a little underwhelming.“

Rio Tinto shares were 0.3% higher at the time of writing.

Spirax Group was the top gainer, up 2.4%, as the stock continued a rebound off technical support hit earlier in the week.