Lucy Harley-McKeown
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FTSE 100 LIVE: Stocks gain as BoE's Bailey touts gradual reduction in rates
How major markets are performing on Tuesday
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The FTSE 100 and European indices rose on Tuesday morning in London as the Bank of England (BoE) governor Andrew Bailey said he doesn't expect a return to low rates, unless there is another unprecedented economic shock such as Covid or the financial crisis.
The FTSE 100 (^FTSE) rose 0.5% in early trade, while Germany's DAX (^GDAXI) climbed 0.8% and the CAC 40 (^FCHI) was 0.4% higher in France.
Speaking to Kent Online, Bailey told the regional newspaper he expects a gradual drop in borrowing costs.
Threadneedle Street held interest rates at 5% in its latest policy meeting, after cutting by 0.25% in August.
London stocks were higher, in part due to a bumper stimulus package introduced by the People's Bank of China overnight, which influenced London-listed companies with foreign business.
The package, which offered relief to the Chinese property sector, also boosted miners. Anglo American (AAL.L), Antofagasta (ANTO.L), Glencore (GLEN.L) and Rio Tinto (RIO.L) were all among the top gainers on Tuesday morning, up more than 4% respectively.
The moves also came ahead of prime minister Keir Starmer's speech at the Labour party conference. He is set to try to strike a positive tone and inspire hope — a continuation of chancellor Rachel Reeves' message on Monday.
The pound (GBPUSD=X) was higher as bets ramp up around the Bank of England's potential interest rate path. The pound rose past the $1.33 mark on bets that the BoE will cut rates faster than its US counterpart. Earlier this year the pound had dipped as low as $1.23.
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