London stocks recover as yields retreat; Auto Trader hits record high
By Pranav Kashyap and Purvi Agarwal
(Reuters) -Britain's stocks rose on Thursday, with the FTSE 100 snapping a six-day losing streak as Auto Trader hit a record high after a profit-beating update, while declines in resources shares countered some gains.
The blue-chip FTSE 100 index closed 0.6% higher, while the mid-cap FTSE 250 jumped 1.2%, its best day in over three weeks.
Most major sectors ended the day higher, led by the personal goods sector, which rose 3.0%, followed by a 2.5% rise in real estate investment trusts.
Energy shares dipped 0.3%, however, tracking a fall oil prices. [O/R]
"When you look at the last couple of days, (the indexes were) falling very sharply as yields rose. But this morning, the yield started to come back off those highs, and we have a slight recovery in the FTSE 100," said Axel Rudolph, senior market analyst at online trading platform IG.
The yield on the 2-year UK government bond pulled back from a three month high, and recorded its worst day since February 2023.
The benchmark FTSE 100 has retreated 2.8% from a record high hit in mid-May as stronger than expected economic data prompted traders to pare back bets on U.S. and UK interest rate cuts this year.
Investors are now on guard as they wait for U.S. personal consumption expenditures (PCE) data, the Federal Reserve's preferred inflation gauge, due on Friday, for clues on its future monetary policy path.
Bank of England Governor Andrew Bailey is also set to deliver a speech later on Thursday.
Auto Trader Group soared 12.9%, leading gains on the FTSE 100 as the online car marketplace firm beat full-year profit estimates.
Online supermarket Ocado Group rebounded 6.5% after falling over 12% in the previous session when index provider LSEG said it could be moved to the mid cap FTSE 250 index.
"It is one of the most shorted stocks in the United Kingdom by hedge funds so they're buying back their short specifically before Ocado shares are out of the FTSE 100," Rudolph added.
(Reporting by Pranav Kashyap and Purvi Agarwal in Bengaluru; Editing by Janane Venkatraman and Mark Potter)
