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FTSE 100 up 0.3%; FTMC up 0.7%
Gold, silver miners soar on rate-cut hopes
Weak UK GDP data fuels rate-cut bets
Dec 12 (Reuters) - The main UK stock indexes rose on Friday, with a gauge of precious metal miners jumping to a record high following a stunning rally in gold and silver prices this year as traders priced in more U.S. interest rate cuts.
The UK’s blue-chip FTSE 100 (.FTSE) rose 0.3% by 1144 GMT, while the midcap FTSE 250 (.FTMC) index added 0.7%.
The FTSE 350 index of precious metal miners (.FTNMX551030) jumped 4.6% to a record high as gold (XAU=) and silver (XAG=) prices climbed more than 1%, with the latter touching a fresh peak against a softer dollar. (GOL/)
Precious metal miners Hochschild Mining (HOCM.L) surged 7.6% to lead gains in the UK midcap index, while Fresnillo (FRES.L) and Endeavour Mining (EDV.L) boosted the FTSE 100.
U.S. and European stocks were trading near record highs after the Federal Reserve cut interest rates by an expected 25 basis points on Wednesday and recent labour market data supported expectations of further easing.
Meanwhile, data showed Britain’s economy shrank 0.1% in the three months to October, losing momentum ahead of finance minister Rachel Reeves’ budget, reinforcing bets of a Bank of England rate cut next week.
Markets assigned a 90% chance of a 25-bps cut next week, as the figures cast doubt on the central bank’s forecast for modest fourth-quarter growth.
The FTSE 100 was headed for weekly gains of about 0.6%, while the midcap index was set for a 0.3% weekly dip.
Among other stocks, InterContinental Hotels Group (IHG.L) rose 2% after Jefferies upgraded the Holiday Inn owner to ‘buy’ from ‘hold’.
Card Factory (CARDC.L) fell about 26% after the greeting cards and gifts retailer warned of a drop in annual profit due to lower-than-expected UK store sales and expectations that weak high street footfall could persist over the festive weeks.
Harbour Energy (HBR.L) rose 4.1% after the oil and gas producer said it had agreed to acquire all subsidiaries of Waldorf Energy Partners and Waldorf Production for $170 million.

UK stocks rose, with the FTSE 100 up 0.3% and the FTSE 250 up 0.7%. Precious metal miners surged due to higher gold and silver prices. Weak UK GDP data fueled expectations of a Bank of England rate cut. InterContinental Hotels Group rose 2% after an upgrade, while Card Factory fell 26% on profit warnings. Harbour Energy rose 4.1% after an acquisition announcement.

UK stocks rise as precious metal miners shine; BoE in focus