The FTSE 100 experienced a slight increase on Thursday, influenced by central bank decisions and individual stock performance. While global factors like the Bank of England’s rate hold and the Federal Reserve’s cautious rate cut boosted some large multinationals, concerns surrounding retail sector performance, specifically Next, tempered the overall upward movement of the index.
- The FTSE 100 edged higher.
- The Bank of England kept rates at 4% and slowed its bond sales program.
- The Federal Reserve cut rates but signaled caution about a rapid easing cycle.
- A stronger dollar boosted large multinationals.
- Next shares fell almost 4% after a cautious update.
- Next reported a 10% rise in first-half sales and a 14% profit increase, both beating forecasts.
- Next stuck to its guidance and warned that second-half growth would slow.
- Next announced a dividend increase.
The slight gains in the FTSE 100 suggest a market sensitive to both global monetary policy and domestic economic indicators. While central bank actions provide some support, company-specific news, particularly cautionary outlooks, can significantly impact investor sentiment and limit overall index growth. The mixed signals, including strong earnings paired with tempered guidance, highlight the uncertainty in the UK economic environment.