Company News

Fed rate cut hopes power FTSE 100, buyout spurs Acacia

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* FTSE 100 up 0.5%, FTSE 250 up 0.2%

* Acacia jumps on Barrick’s increased buyout offer

* Dovish comments from Fed officials spur rate cut hopes

July 19 (Reuters) - London’s FTSE 100 posted broad gains on Friday as brighter hopes of a U.S. interest rate cut fuelled risk appetite, while mid-cap Acacia Mining soared after agreeing to an increased buyout offer from Barrick Gold.

The blue-chip index added 0.5%, with all sectors trading in the black in early deals. The mid-cap FTSE 250 rose 0.2% by 0704 GMT.

The FTSE tracked overnight gains on Wall Street and in Asian markets, as two top Federal Reserve officials argued the need to quickly stimulate the economy, cementing bets that the Fed will cut rates at its July 30-31 policy meeting.

Acacia surged nearly 17% to 218 pence and hit its highest level since March after Barrick, its largest shareholder, agreed to buy shares in Acacia it did not already own at an implied value of 232 pence a share. (Reporting by Shashwat Awasthi in Bengaluru Editing by Saumyadeb Chakrabarty)