FTSE 100 Hits Record High at 8475.35

The UK's FTSE 100 has achieved a record high, surpassing its previous peak amid rising expectations for interest rate cuts by the Bank of England. The index climbed to 8,475.35 points, fueled by strong performances from exporters and housebuilders, as well as a recent dip in the Consumer Prices Index (CPI) inflation. Economic data, including a surprising decline in retail sales, has solidified market predictions of further monetary easing, with a 92% probability of a rate cut in February. Analysts highlight that the FTSE 100's international exposure has insulated it from domestic market turmoil, with major companies like HSBC and Shell driving significant gains. Despite the positive outlook, concerns remain about consumer spending behavior following potential rate cuts, which may affect growth in the early part of the year. Overall, the FTSE 100's rally reflects a resilient market environment amidst economic uncertainty.