FTSE 100 hits highest level in nearly a year amid hopes of interest rate cuts
It was the best day for the blue-chip index for about six months.
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Your support makes all the difference.The UK’s top stock market index has soared to its highest level in nearly 11 months, with investors across the globe in high spirits amid hopes of interest rate cuts in the US and the UK.
The FTSE 100 jumped by about 2% on Thursday afternoon, rising above the 7,900 mark during the day for the first time since late April last year.
It was the best day for the blue-chip index for about six months. It closed 145.17 points higher, or 1.88%, to 7,882.55.
Markets were buoyed by the prospect of looming rate cuts in the wake of Bank of England and Federal Reserve meetings.
In the US, bank chiefs signalled that they expect to cut their key interest rate three times this year, fuelling a rally on Wall Street, despite leaving rates unchanged for another month running.
The Bank of England also opted to hold rates steady at 5.25%, but said things were “moving in the right direction” when it comes to being able to cut rates in the future.
Chris Beauchamp, chief market analyst for IG, said: “Markets have continued their euphoric reaction to this week’s central bank events, with the FTSE 100 closing in on 7,900 for the first time since May last year.
“UK stocks have lagged far behind, but with the Bank of England now on a path to cutting rates we could see the FTSE 350 make further strides as the flow of investor money finally heads to the UK.”
It was a weak session for the pound which dropped against the dollar and the euro. It was down about 0.9% against the US dollar to 1.267, and about 0.35% against the euro to 1.665.
Elsewhere in European markets, Germany’s Dax closed 0.88% higher and France’s Cac 40 was up 0.22%.
Over in the US, the S&P 500 was up 0.6% and Dow Jones up about 0.8% by the time European markets closed.
In company news, shares in Next surged to an all-time high of more than 9,000p per share after the retailer revealed its yearly profit beat expectations.
It reported a 5% rise in underlying pre-tax profits, having already upgraded its earnings outlook five times over the past year.
The stronger performance was partly driven by stock clearances in January, the chain said. Its share price was up 6.7% at close.
Shares in National World dipped after the regional newspaper group reported a slight decline in its yearly profit, despite seeing revenues rise.
The group also told shareholders it thinks it is the “best qualified among the various candidates” to make a bid for the Telegraph, renewing its potential pursuit of the business. Its shares closed 4.6% lower.
The biggest risers on the FTSE 100 were 3i Group, up 220p to 2,748p, Next, up 568p to 9,078p, St James’s Place, up 24.3p to 461.5p, Airtel Africa, up 4.7p to 97.75p, and Anglo American, up 85.2p to 1,923.8p.
The biggest fallers on the FTSE 100 were Hikma Pharmaceuticals, down 74.5p to 1,873.5p, British American Tobacco, down 32.5p to 2,362p, Centrica, down 1.7p to 125.2p, Reckitt, down 33p to 4,300p, and Beazley, down 3.5p to 689p.