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.