Market Analysis
The UK's benchmark FTSE 100 opened higher on Thursday, driven by gains in GSK after the company reached a settlement in U.S. lawsuits. Meanwhile, traders are focusing on key U.S. inflation data for clearer insights on potential Federal Reserve rate cuts.
By 07:10 GMT, the blue-chip FTSE 100 had risen 0.3%, while the mid-cap FTSE 250 soared 5.7% after GSK agreed to pay up to $2.2 billion to settle the majority of U.S. state court lawsuits, which claimed that a discontinued version of its heartburn medication, Zantac, was linked to cancer.
The broader pharmaceutical and biotech sector saw a 1.5% increase, leading sectoral gains.
The oil and gas sector also edged up by 0.2%, boosted by a spike in fuel demand as Hurricane Milton approached Florida, along with concerns over possible supply disruptions in the Middle East amid escalating tensions between Israel and Iran.
On the domestic data front, the UK housing market showed further recovery last month, with increases in house prices, sales, and inquiries. However, pressure on the rental sector continued to mount as tenant demand outpaced the availability of rental properties.
Traders are now awaiting the U.S. inflation report, which is expected to offer more clarity on whether the Federal Reserve will cut interest rates next month and to what extent.
Elsewhere, Liontrust Asset Management saw its shares drop 1.9% after reporting a decline in third-quarter assets under management and advice (AuMA), citing weak investor sentiment ahead of the new government's first budget.
Paraphrasing text from "Reuters" all rights reserved by the original author.