FTSE 100 Inches Up Amid Dovish Bank of England Outlook, Phoenix Group Leads Gains

On Friday, the UK's FTSE 100 index saw a slight uptick as investors continued to respond positively to the Bank of England's accommodative stance on monetary policy. Phoenix Group, an insurer, led gains following the release of its annual results.

The blue-chip FTSE 100 UK100 climbed 0.7% by 0909 GMT, reaching a level not seen in over 11 months. This marks the index's second consecutive week of gains, driven by a nearly 2% surge on Thursday, buoyed by signals from the Bank of England indicating potential interest rate cuts.

Lilian Chovin, head of asset allocation at British private bank Coutts, remarked, "We are hearing increasing discussions about forthcoming rate cuts... Recent upticks in U.S. inflation are unlikely to deter central banks from pursuing interest rate reductions."

Conversely, the pound GBPUSD declined to its lowest level in a month after reports revealed stagnant consumer spending in the UK for February. Bank of England Governor Andrew Bailey's comments on potential rate cuts further bolstered dollar-earning companies listed on the FTSE 100.

In sectoral terms, telecommunications witnessed a 2% increase, leading gains, while precious metals miners experienced a 1.5% dip, mirroring the decline in spot gold prices.

Phoenix Group (PHNX) surged 9.3%, topping the FTSE 100 gainers, following its announcement of aiming to generate operating cash of £1.4 billion ($1.77 billion) and reducing debt by £500 million by 2026.

Conversely, JD Sports (JD.) fell 4.5% after Nike (NKE) cautioned about a potential revenue decline in the first half of fiscal 2025, impacting its U.S. counterpart.

On the mid-cap front, the FTSE 250 index edged up 0.1%, restrained by an 8.8% decline in Darktrace (DARK) after a technology growth fund advised by private equity firm KKR (KKR) fully divested its stake in the cybersecurity company.