All eyes were on the Federal Reserve and next week’s US interest rate decision as the FTSE 100 flirted with record highs on Friday.
London’s leading index was trading 0.3% higher at 9,328 at the time of writing. The FTSE 100 all-time record closing high sits at 9,321.
Cyclical sectors were among the biggest gainers as investors picked up miners and financials.
“The FTSE 100 pushed higher as investors loaded up on mining shares amid a rise in copper prices,” said Russ Mould, investment director at AJ Bell.
“The broad-based rise in miners also suggests certain investors are in a risk-on mood ahead of the US interest rate decision next week. The Fed is widely expected to cut rates by a quarter percentage point. Such a move could please the market as it makes it cheaper for companies and consumers to borrow money that can then be spent and help accelerate economic growth.”
Glencore added 3% while Antofagasta rose 2%. Anglo American gained 1.4% and was the FTSE 100’s best-performing stock on the week after announcing a merger with Teck Resources.
Beazley was the top riser on Friday, gaining 3.4%.
Poor UK GDP data appeared to weigh on the housebuilding sector, which didn’t join in the cyclically-oriented rally. Taylor Wimpey and Barratt Redrow were largely flat at the time of writing.
“The economy expanded 0.2% in the three months to June, while forecasts had expected growth of 0.3% in line with the previous period,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.
“On a rolling basis, quarterly growth has slowed in each of the last three months, with monthly growth stalling completely in July. This provides further challenge to Chancellor Rachel Reeves to plug the UK’s funding gap without stalling the economy in the forthcoming Budget.”
The doom and gloom around UK GDP was felt in retailers and FTSE 100 REITs. JD Sports was the FTSE 100’s top faller with a loss of 1.4%.