London’s FTSE 100 stocks index closed at a record high for a second straight day Tuesday, catching up with major global peers that have struck all-time peaks this year as inflation cools.
Sentiment was upbeat across major world indices thanks to easing Middle East worries and hopes of interest-rate cuts soon materialising, while traders are keenly awaiting the release this week of more major earnings and key US inflation data.
London’s FTSE 100 added 0.26 percent on the session, hitting a record high of 8,076.52 points shortly after the open to surpass a record 8,047.06 struck in February last year, before closing at 8,044.81 points.
“Good news as this is, it does highlight the sluggishness of the UK’s top equity index when compared to its US and European competitors which hit a string of successive records throughout the first quarter of 2024,” said David Morrison, senior market analyst at financial services provider Trade Nation.
But, he added, “let’s not be too churlish as it could be we see the FTSE outperform its rivals in the years to come should investors seek out dividend paying value stocks rather than techy growthy ones.”
The index’s push skywards came even as Bank of England chief economist Huw Pill suggested UK rate cuts were not in the immediate offing despite headline inflation declining.
The index has in recent weeks been lifted by a weakening of the pound, particularly against the dollar, as markets anticipate cuts to UK interest rates in the coming months thanks to slowing price rises.
