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UK equities rise on optimism over U.S. debt ceiling deal

equities fall

The FTSE 100 increased 0.3 per cent, reflecting a buoyant sentiment in global markets on optimism that Washington is nearing a deal on the U.S. debt ceiling issue that would prevent a default

UK equities finished higher on Thursday as optimism increased around U.S. debt ceiling deal, while a decline in BT Group and Burberry restricted advances on the FTSE 100.

UK’s biggest broadband and mobile provider BT Group slipped 5.0 per cent after the firm stated it will cut up to 55,000 jobs as it finishes its fibre roll-out and adapts to new technologies like Artificial Intelligence.

Telecoms seems to be awash with job cuts with Vodafone and BT decreasing the size of their workforces, stated Victoria Scholar, head of investment at interactive investor.

Both have been struggling with inflation pressures, especially from energy, she said.

Vodafone Group stated on Tuesday it would cut 11,000 jobs globally over three years.

The blue-chip FTSE 100 increased 0.3 per cent, mirroring a buoyant sentiment in international markets on optimism that Washington is nearing a deal on the U.S. debt ceiling issue that would prevent a default.

A media report quoted top Republican Kevin McCarthy as stating the House could vote on a debt limit agreement upcoming week.

British banks gained 1.5 per cent, while a softer pound also contributed to gains.

The midcap FTSE 250 gained 0.4 per cent, as Aston Martin soared 12.5 per cent after the luxury carmaker stated Geely Automobile Holdings Ltd would invest nearly 234mln pounds ($295.33mln).

Britain’s FTSE indexes have been trading in a tight range since late last month as mixed corporate earnings and global concern over a potential U.S. debt default have weighed on sentiment.

Luxury group Burberry Group lost 5.2 per cent as ongoing weakness in the US overshadowed a stronger-than-expected Q4 sales led by a bounce back in China.

National Grid dived 2.9 per cent after the energy utility firm stated it anticipates fiscal 2024’s underlying earnings to be modestly below the level a year ago, after the UK government modified its capital allowance regime from April 1.

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