The FTSE 250 index has outperformed the FTSE 100 index in the past few weeks as small-cap companies rebounded.

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The index has jumped by more than 4% in the past 30 days while the FTSE 100 is up by 1%. Year-to-date, however, the two indices are still in the red, lagging behind their European peers like the the DAX and CAC 40 indices.

FTSE 250 vs FTSE 100 charts

The FTSE 250 index has rallied in the past few weeks as acquisitions of smaller British companies rose. On Wednesday, Trive Capital, a private equity company, acquired Ten Entertainment in a £300 million deal. The buyout was a 33% premium to its closing price on Tuesday.

The deal came a few weeks after Mars acquired Hotel Chocolat in a $662 million deal. Meanwhile, 888 Holdings turned down an acquisition from Playtech. Recently, DraftKings was approaching 888 Holdings after concerns about the company’s license. Therefore, investors believe that other FTSE 250 companies will be acquired.

The FTSE 250 index has also risen as investors react to the actions of the Bank of England (BoE) and the Federal Reserve. Economists believe that the BoE will start cutting rates in the coming months now that inflation is falling. The most recent data revealed that the headline inflation rate dropped to 4.2%.

As a result, UK gilt yields have continued falling in the past few days. The 10-year gilts dropped to 4% from the lowest level in May of this year. It peaked at over 5% a few months ago as investors anticipated that the Bank of England will start hiking rates. The 30-year gilt yield fell to 4.57%.

Many companies in the FTSE 250 index have bounced back in the past 30 days. Carnival share price has jumped by over 27% in this period as demand for traveling continued. Bridgepoint Group stock rose by 23% as growth of private credit rose. The company’s funds under asset management rose to over 39.5 billion euros.

The other top performers in the FTSE 250 index were Genuit Group, Direct Line Insurance, Watches of Switzerland, easyJet, and Helios Towers. EasyJet shares have jumped by over 21% in the past 30 days as the travel industry bounced back. 

The FTSE 250 index has also had some laggards in the past 30 days. Some of the worst-performing companies in the index were Digital 9 Infrastructure, Dr Martens, Indivior, and Kainos Group. All these shares have dropped by more than 20%.

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