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06.02.202616:55:21UTC+00FTSE 100 Climbs on Banks, Oil, and Rate-Cut Hopes

London's FTSE 100 continued its upward momentum on Friday, concluding the day at 10,370 and marking its second consecutive weekly advance. This rally was largely fueled by robust performance in banking and oil sectors, which benefited from an overall rise in commodity prices, such as precious and base metals, as well as an increase in crude oil prices. Investor sentiment received an additional boost from the Bank of England’s dovish stance to maintain interest rates unchanged, a decision made a day prior. The closer-than-anticipated voting outcome strengthened the belief that monetary policymakers might accelerate the timeline for interest rate cuts, with current market projections suggesting nearly a 70% likelihood of a reduction as soon as the March meeting. In contrast, the data and software sectors fell behind the broader market, as mounting concerns over artificial intelligence potentially disrupting established business models emerged. Notably, RELX experienced a 4.6% drop, while Experian declined by 3.1%. Looking ahead to next week, investors are set to focus on a busy earnings schedule, with significant updates expected from major companies including Barclays, NatWest, Unilever, BAT, and RELX.



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