FTSE 100 up 0.7

Sept 17 Reuters The FTSE 100 rose to a twoweek high on Tuesday, lifted by increasing bets of a larger U.S. interest rate cut and strength in domestic retail shares after an improved forecast from Kingfisher.

The bluechip index FTSE 100 rose 0.7 to its highest since Sept. 3. The pound eased slightly, relieving some pressure on the index39;s exportoriented companies.

All major sectoral indexes were in the green, with automobile and retail rising 1.7 and 1.6, respectively.

The midcap index was up 0.2.

European home improvement retailer Kingfisher led FTSE 100 gains after raising the bottomend of its profit outlook for the full year, citing improving seasonal category sales trends.

With all eyes on the Federal Reserve39;s expected first interest rate cut on Wednesday, traders lifted the chances of a largerthanusual 50basispoint reduction to 67 from 50 on Monday, as per the CME39;s FedWatch tool.

The Bank of England also meets this week. Analysts largely expect policymakers to leave rates on hold, so investors will primarily watch for clues on the BoE39;s path for the rest of the year and updates on the pace of its bond sales.

UK inflation data, due on Wednesday, will also be closely watched for more indications on the BoE39;s rate path.

Among individual movers, shares of gambling technology firm Playtech rose 0.5 after the company said it will sell its Italian unit Snaitech for 2.3 billion euros 2.56 billion to Flutter Entertainment. Flutter shares…