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FTSE 100 Rises Amid Fed Bets

U.K. stocks advanced on Friday as comments from a top Federal Reserve official added to bets that the U.S. central bank will cut interest rates starting this month.

Markets also benefited from weakness in the pound. The British pound edged lower after a government report showed the U.K. budget deficit widened to the highest June level since 2015.

Public sector net borrowing excluding public sector banks, rose by GBP 3.8 billion from the previous year to GBP 7.2 billion, the highest June borrowing since 2015. The expected level was GBP 3.9 billion.

The benchmark FTSE 100 was up 35 points or 0.46 percent at 7,527 after losing 0.6 percent on Thursday.

Self-storage company Big Yellow edged down slightly after its first-quarter revenue rose at a slower rate than last year due to Brexit uncertainty.

Close Brothers Group tumbled 3 percent. The merchant bank flagged low trading volumes at its market maker unit.

Acacia Mining shares soared 19 percent. The company announced that it has reached terms of a recommended offer, under which Barrick Gold Corp. will acquire all Acacia shares which it does not already own.

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