FTSE 100 posts biggest weekly gain in over 2 years

(Reuters) -Britain's benchmark FTSE 100 index posted its biggest weekly gain since October 2022 on Thursday ahead of the Easter break, although it was little moved on the day as gains from Rentokil and Sainsbury offset weakness elsewhere.

The mid-cap FTSE 250 index dipped 0.08%, but was also higher on the week, with the biggest such jump since January.

Leading the gains, an index of house builders rose for a second consecutive session, adding 1.3%, after the European Central Bank cut interest rates for the seventh time in a year, aiming to support the struggling euro zone economy.

Expectations are also mounting for a Bank of England rate cut in May following Wednesday's lower-than-expected UK inflation data.

The energy index gained 0.5% as oil prices rose to the highest in two weeks.

Pest control and hygiene services firm Rentokil was the top individual performer on the blue-chip index, with a gain of 5% after it reported a nearly 2% rise in first-quarter organic revenue.

Sainsbury's rose 3.6% after Britain's second-largest food retailer forecast flat profit this year as it pledged to sustain its competitive edge if a price war emerges.

The automobiles and parts index dropped 5.3%, while defence stocks Rolls-Royce and BAE Systems were down 1.4% and 1.5%, respectively, weighing significantly on the benchmark index.

The precious metals and mining index fell 2%, snapping eight sessions of gains. For the week, it was the best performing sector with an 8.7% gain, benefiting from the boost to gold prices from safe-haven demand.

Man Group fell 2% after the hedge fund said its assets under management fell by about $5.6 billion in the two weeks to April 14.

British meal delivery company Deliveroo rose 3.3% after its orders in the first quarter jumped 7%, beating the 6% recorded in the final quarter of 2024.

(Reporting by Nikhil Sharma and Ragini Mathur in Bengaluru; Editing by Sahal Muhammed, Kirsten Donovan)