UK's FTSE 100 set to close March quarter on positive note led by banks

The UK's FTSE 100 index is set for a positive conclusion to the March quarter, hitting fresh highs on Thursday fuelled by a surge in miner and bank stocks during the final trading session of the week.

The commodity-heavy FTSE 100 index was up 0.5 per cent, while the domestically-focused FTSE 250 saw a marginal dip of 0.1 per cent.

With the benchmark index hovering around one-year highs, reminiscent of levels seen last week, investors are optimistic about ending the January-March quarter with a 3 per cent gain, marking its highest performance since the final quarter of 2022. Over the course of the week, the index is expected to register a 0.4 per cent gain.

Mining stocks saw an uptick, buoyed by the rise in base metals prices, which were supported by signs of stabilisation in China's broader economy. Concurrently, bank stocks witnessed a surge of 1.4 per cent, leading sectoral gains.

While last week's rally was initially fuelled by dovish messages from major central banks, the momentum has slightly waned this week. Nevertheless, investor sentiment remains positive, drawing reassurance from recent developments.

"Investors are deriving considerable positivity from the sentiments expressed last week. The reassurances provided then are now reflecting in market movements," remarked Thomas Gehlen, senior market strategist at SG Kleinwort Hambros.

Attention is now turning to the upcoming release of the US personal consumption expenditure price index (PCE), the Federal Reserve's preferred inflation gauge, scheduled for Friday, coinciding with the Good Friday holiday when most global markets will be closed.

On the macroeconomic front, official data confirmed Britain's entry into a shallow recession last year, with the economy contracting by 0.1 per cent in the third quarter and by 0.3 per cent in the fourth quarter, in line with preliminary estimates.

JD Sports saw an uptick of 6.8 per cent following the announcement that its pretax profit for the year ending February 4 would meet previously downgraded guidance.

Additionally, Spirent Communications soared 10.7 per cent after agreeing to a takeover offer from Keysight Technologies, valuing the firm at £1.16 billion ($1.46 billion).

However, M&G, Smith & Nephew, and Taylor Wimpey witnessed declines ranging from 1 per cent to 6 per cent as they traded ex-dividend.

(With Reuters inputs)