The FTSE 100 index has done well this year as it jumped to a record high of £8,910 this month. It has jumped by almost 80% from its lowest level during the pandemic as most constituent companies thrived.
The Footsie will be in the spotlight in the next two days as the Federal Reserve and Bank of England (BoE) publish their interest rate decisions. Economists expect the two banks to leave interest rates unchanged and deliver a dovish twist as the economy slows.
This article explores some of the best FTSE 100 shares to buy for big gains ahead of the upcoming BoE rates decision.
Best FTSE 100 shares to buy today
The best FTSE 100 shares to buy today are companies like Fresnillo (FRES), BAE Systems (BA), Rolls-Royce (RR), and Lloyds Bank (LLOY).
Fresnillo (FRES)
Fresnillo is one of the best FTSE 100 stock to buy this year because of its business performance. For starters, Fresnillo is a Mexican company that has grown to become one of the top silver mining companies globally.
The company will benefit from the ongoing silver price surge. Silver jumped to $35 this week, meaning that it has soared by almost 200% from its lowest level in 2020.
Silver’s surge is mostly because gold price has soared to a record high as investors rotate to safe haven assets. It has a close correlation with gold, its bigger cousin. Silver has also done well because of the ongoing Chinese economic recovery.
This performance explains why the Fresnillo share price has surged by over 50% this year and 103% in the last 12 months. The risk is that the company may drop if silver prices retreat in the coming weeks.
BAE Systems (BA)
BAE Systems is another quality FTSE 100 shares to buy. It has already jumped by over 43% this year, making it the second-best performing company in the FTSE 100 index this year.
BAE Systems, the biggest defense contractor in the UK, has thrived because of Donald Trump strategies in the US. He has called on NATO members to boost their defense capabilities, a move that will benefit BAE.
European countries have also signaled that they will start boosting their defense capabilities. A German vote on defense and government spending has passed, and other countries are expected to do the same.
Read more: Rheinmetall, BAE Systems and other European defence stocks surge as leaders push for higher military spending
Rolls-Royce (RR)
Rolls-Royce share price continues to fire on all cylinders this years as it jumped by over 42%. This performance means that it has jumped by over 535% in the last five years, making it the biggest industrial company in the UK.
Rolls Royce business has done well because of the rising demand for its services from airlines, governments, and the private sector. Airlines are doing well and are constantly looking for maintenance as their services recover. Also, the company is benefiting from the resurgence of nuclear power energy.
Rolls-Royce Holdings is also benefiting from the ongoing demand for data centers because of the artificial intelligence companies.
Read more: Will the surging Rolls-Royce share price 1,000p in 2025?
Lloyds Bank (LLOY)
Lloyds Bank is one of the best FTSE 100 shares to buy as it jumped by over 28% this year. The company is doing well as its revenue and profitability growth continues. Most importantly, Lloyds has embarked on a strategy to return a substantial amount of its cash to investors through dividends. Its goal is to reduce its CET1 ratio to about 13% by 2026.
The other top FTSE 100 shares to buy this year are Coca-Cola, Antofagasta, St James Place, NatWest, HSBC, and Aviva. St. James Place is going through a turnaround strategy, while NatWest and HSBC are benefiting from the ongoing European bank surge.
Read more: Analysts are bullish on Lloyds share price: should you?
The post Best FTSE 100 shares to buy ahead of BoE interest rate decision appeared first on Invezz
