UK stocks join global rally on optimism over trade, rate path
June 27 (Reuters) - The UK's stock indexes climbed on Friday, with the midcaps hovering at a 10-month high, driven by global optimism over earnings, trade policies and monetary policy path.
The internationally focussed FTSE 100 (.FTSE), opens new tab rose 0.5% by 1031 GMT, while the domestically oriented FTSE 250 (.FTMC), opens new tab added 0.6% and was on track for its biggest weekly gain since mid-May.
Markets have rebounded this week due to easing concerns over the Middle East conflict, signs of U.S.-China trade negotiations and potential for U.S. interest rate cuts. Asian shares rose to their highest in over three years and both the S&P 500 and Nasdaq closed near record highs.
Investors will closely assess U.S. PCE data, the Federal Reserve's preferred gauge of inflation, later today for hints of the path of monetary policy.
Also aiding sentiment, the United States reached an agreement with China on how to expedite rare earth shipments to the U.S., a White House official said, amid efforts to end a trade war between the world's biggest economies.
Meanwhile, British Prime Minister Keir Starmer sharply scaled back planned welfare cuts to quell a damaging rebellion by lawmakers in his governing Labour Party. Starmer's reforms had sought to shave 5 billion pounds ($6.9 billion) per year off a rapidly rising welfare bill.
The reforms are set to be put to a vote in parliament on July 1.
JD Sports (JD.L), opens new tab was among the top gainers on the blue-chip FTSE 100, advancing 6.6% after U.S. peer Nike's upbeat earnings bolstered sportswear brands.
Unilever (ULVR.L), opens new tab shares rose 0.9% after news that it was buying men's personal care brand Dr Squatch from private-equity firm Summit Partners for $1.5 billion (1.09 billion pounds).
On the flipside, precious metals and mining index (.FTNMX551030), opens new tab dropped nearly 2% as safe-haven gold declined following a ceasefire between Iran and Israel.
Fresnillo (FRES.L), opens new tab fell 2.6%, Endeavour Mining (EDV.L), opens new tab and Hochschild Mining (HOCM.L), opens new tab lost 1.8% each.
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