FTSE 100 Hits Record High on Rate Cut Hopes

The FTSE 100, the UK's premier stock market index, has reached a record high, driven by expectations of interest rate cuts by the Bank of England and a weakened pound. Analysts predict a possible quarter-point reduction to 4.5% in response to weaker UK retail sales and inflation data, which could further boost investor confidence. The pound's depreciation has benefited multinational companies listed in London, as their sterling-priced shares become more attractive to foreign investors. This surge has been particularly advantageous for sectors like mining and housebuilding, with companies such as Antofagasta and Taylor Wimpey seeing significant gains. The rally has contributed to an increase in investor and pension fund wealth, despite the broader economic backdrop of stagnant growth. Overall, the FTSE 100's performance has outpaced previous records set last year, marking a positive moment for the London stock market amidst global market dynamics.