London markets rebound as oil prices rise and optimism for a Fed rate cut returns

London markets rebounded on Friday led by optimism over Federal Reserve rate cuts and an oil price boost for commodity stocks.

The FTSE 100 UKX, +0.17% reversed two days of losses, climbing 0.7% and the domestically-focused FTSE 250 MCX, +0.31% also rose 0.4%.

What’s moving the markets?

Oil prices rebounded CL00, +1.41% after several days of losses after the U.S. Navy destroyed an Iranian drone the Strait of Hormuz, reigniting tensions.

The FTSE 100’s oil and mining heavyweights reacted positively, making substantial gains having fallen in recent days.

U.S. stocks were led higher on Thursday after New York Fed president John Williams said it “pays to act quickly to lower rates at the first sign of economic distress.

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