Economic news

FTSE 100 Inches Up on Fed Pause Bets; Trainline Jumps as Ticket Sales Rise

  • Miners lead gains in FTSE 100
  • ECB decision on watch
  • Hipgnosis Songs Fund climbs on catalogues sale
  • Melrose, Unite Group fall on ex-dividend trading
  • FTSE 100 up 0.3%, FTSE 250 down 0.2%

Sept 14 (Reuters) - UK's FTSE 100 rose on Thursday after U.S. inflation data bolstered bets that the Federal Reserve will keep interest rates steady next week, while rail ticketing company Trainline jumped after reporting higher half-year ticket sales.

The exporter-heavy FTSE 100 index edged up 0.3% as of 0819 GMT.

Data on Wednesday showed the annual rise in underlying U.S. inflation was the smallest in nearly two years, even as consumer prices increased by the most in 14 months in August.

Investor focus will shift to Europe as the European Central Bank (ECB) decides on Thursday whether to raise its key lending rate to a record high in what should be its final step in the fight against inflation, or take a break as the economy deteriorates.

"They're(ECB) going to take the easy decision today, which is to raise rates one more time and then signal that's everything from here on is down to the data," said Craig Erlam, senior market analyst, OANDA.

Rio Tinto and Anglo American climbed 3.0% each, after brokerage J.P.Morgan raised the price target on both the miners.

The broader industrial metal miners climbed 2.3%, further boosting the benchmark index and leading sectoral gains.

Trainline shares jumped 11.2%, after the firm reported higher ticket sales for the first half of financial year 2024 and announced share buy back of up to 50 million pounds ($62.4 million).

Shares of real estate firm Unite Group, product testing company Intertek Group and aerospace supplier Melrose declined between 1.3% and 1.8% as they traded ex-dividend.

Midcap stocks slipped 0.2%, hurt by a 1.4% drop in Energean shares as the oil firm traded ex-dividend, while brokerage Berenberg cut price target on the stock.

Hipgnosis Songs Fund rose 1.4%, after the music catalogues investor said it will sell some catalogues to a partnership between its investment adviser and funds advised by Blackstone for $465 million.

($1 = 0.8010 pounds)

Reporting by Siddarth S in Bengaluru; Editing by Subhranshu Sahu and Dhanya Ann Thoppil

Source: Reuters


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