The FTSE 100 forged ahead on Thursday as a less “hawkish” than feared rate cut by the US Federal Reserve and a brighter US economic outlook spurred stocks, despite some fresh AI worry.

The FTSE 100 index closed up 47.63 points, 0.5%, at 9,703.16. The FTSE 250 ended 21.13 points higher, 0.1%, at 21,852.10, and the AIM All-Share ended up 1.04 points, 0.1%, at 747.66.

In Europe on Thursday, the CAC 40 in Paris closed up 0.8%, while the DAX 40 in Frankfurt ended 0.7% higher.

After Europe’s close on Wednesday, the US central bank cut interest rates by 25 basis points as expected and chairman Jerome Powell struck a softer tone than some had feared.

Bank of America called it an “unintentionally dovish cut”, Citi said markets “had overestimated how hawkish Mr Powell would sound,” while

See Full Page