FTSE 100 Edges Higher as Markets Await Federal Reserve Decision

British Markets Show Resilience Amid Rate Cut Expectations

The FTSE 100 demonstrated characteristic British market resilience on Thursday, maintaining modest gains as investors positioned themselves ahead of anticipated Federal Reserve interest rate decisions.

The benchmark index reached 9,210.93 in early trading before settling at 9,196.71, representing a measured 0.2% increase. This steady performance reflects the measured approach of British investors amid global economic uncertainties.

Traditional British Retail Shows Strength

Notable gainers included Next (+2.5%), alongside stalwart British retailers Marks & Spencer and Tesco, demonstrating the enduring strength of the UK's retail sector. WPP and Associated British Foods also posted gains exceeding 2%, highlighting the resilience of British business fundamentals.

However, global economic headwinds continue to impact certain sectors. British aviation leader Jet2 saw a 13.5% decline after revising earnings expectations, while defence giant BAE Systems experienced a modest retreat of 2%.

Construction Sector Faces Challenges

The S&P Global survey revealed ongoing pressures in Britain's construction sector, marking its eighth consecutive month of contraction. The Construction PMI reached 45.5 in August, improving slightly from July's 44.3 but remaining significantly below the growth threshold of 50.0.

"Construction activity has decreased throughout the year-to-date, which is the longest continuous downturn since early-2020," stated Tim Moore, Economics Director at S&P Global Market Intelligence.

Corporate Developments

In positive corporate news, British genetics pioneer Genus surged 12.5% following impressive annual results, while IG Group Holdings advanced 1.5% after announcing a new share buyback programme, demonstrating continued confidence in British corporate governance.