UK's FTSE 100 closes at seven — week high on fiscal reassurance, defensive buying
(Updates after markets close) By Darshan Kumar R Oct 15 (Reuters) — London's blue-chip stocks closed at a seven-week high on Thursday after the finance minister reaffirmed the government's commitment to fiscal discipline, while a shift into defensive sectors amid a deepening global selloff in AI-related stocks also supported the benchmark. The benchmark FTSE 100 index closed higher by 1.1% to 10,840.35 points, its highest since August 26, while the midcap FTSE 250 also rose 0.26%. Investors sought refuge in defensive sectors as a global chip stocks selloff intensified, benefiting UK's large caps with limited exposure to AI "It's a rotation towards long-term; almost an infrastructure play without the risk of a rate increase and healthcare, consumer cyclicals are a safer heaven as they are not overly leveraged," said Nick Saunders, CEO of Webull UK Drugmakers AstraZeneca and GSK climbed 3.2% and 2.9%, respectively Dove soap maker Unilever rose 1.8% and cigarette maker British American Tobacco advanced 2.5% British finance minister John Healey said this month's budget would aim at bolstering economic resilience, adding that he and Prime Minister Andy Burnham were aligned on maintainin
(Updates after markets close) By Darshan Kumar R Oct 15 (Reuters) — London's blue-chip stocks closed at a seven-week high on Thursday after the finance minister reaffirmed the government's commitment to fiscal discipline, while a shift into defensive sectors amid a deepening global selloff in AI-related stocks also supported the benchmark. The benchmark FTSE 100 index closed higher by 1.1% to 10,840.35 points, its highest since August 26, while the midcap FTSE 250 also rose 0.26%.
Investors sought refuge in defensive sectors as a global chip stocks selloff intensified, benefiting UK's large caps with limited exposure to AI "It's a rotation towards long-term; almost an infrastructure play without the risk of a rate increase and healthcare, consumer cyclicals are a safer heaven as they are not overly leveraged," said Nick Saunders, CEO of Webull UK Drugmakers AstraZeneca and GSK climbed 3.2% and 2.9%, respectively Dove soap maker Unilever rose 1.8% and cigarette maker British American Tobacco advanced 2.5% British finance minister John Healey said this month's budget would aim at bolstering economic resilience, adding that he and Prime Minister Andy Burnham were aligned on maintaining fiscal discipline Financials, including heavily weighted banks, was up 0.3% UK's gross domestic product rose 0.1% in August, boosted by AI optimism, against expectations of a 0.1% drop Bank of England Chief Economist Huw Pill said that any future interest rate increase should not be interpreted by investors as the start of a prolonged series of rate hikes Economists polled by Reuters expect the BoE to raise rates to 4% in November Industrial metal miners were down 1.4%, on weaker copper prices Antofagasta fell 4.1%, after the Chilean miner's third-quarter copper production declined year-on-year E-commerce group THG surged 16.3% after lifting its annual profit forecast Paper and packaging firm Mondi slumped 7.9% after hiking prices for several paper grades to offset higher energy costs (Reporting by Darshan Kumar in Bengaluru; Editing by Vijay Kishore and Shailesh Kuber) ((darshan.kumar@thomsonreuters.com)