FTSE indexes eye sharp weekly gains on peak-rate optimism

The UK's main stock indexes rallied to close over 1 per cent higher on Friday and notched steep weekly gains after a slew of economic data spurred expectations among investors that interest rates have peaked, reports Reuters.

The blue-chip FTSE 100 rose 1.3 per cent, while the midcap FTSE 250 index added 1.2 per cent.

Despite Thursday's selloff, the indexes looked set to end the week sharply higher as cooling inflation and signs of softening economic growth spurred bets of interest rates cuts by the Bank of England.

The benchmark index was up nearly 2 per cent for the week, its best weekly performance in nine, while the FTSE mid-cap index closed 4 per cent higher during the same period.