London stocks rallied as hopes for interest rate cuts grew on both sides of the Atlantic. The FTSE 100 soared 0.8%, its best day in over a month, while the FTSE 250 snapped a three-session losing streak with a 1.1% rise.
In the U.S., stagnant consumer prices in May bolstered expectations of a Federal Reserve rate cut. Meanwhile, British economic data showed a flat output in April, prompting speculation about Bank of England intervention.
Rentokil Initial led gains, up 13.7% after reports of a significant investment from Trian Fund Management. Investors await the Federal Reserve’s decision later today.
