London’s benchmark FTSE 100 index reached an all-time high in early trading Friday, lifted by renewed optimism over the global economy.
The index jumped 1.0 percent to 8,475.35 points, slightly surpassing a record achieved in May last year.
Around 0900 GMT, it stood at 8,472.67 points.
British stocks have been boosted in recent days by a drop in UK government bond yields after a spike in state borrowing costs last week sent the pound tumbling.
Sterling was lower Friday, reflecting ongoing strains for the British economy, which is struggling to grow despite falling inflation.
Official data Friday revealed a surprise drop to UK retail sales in December.
The FTSE 100 contains numerous multinationals whose revenues are largely earned in dollars, enabling them to profit from a falling pound.
“Weakness of sterling, which makes overseas earnings more valuable on repatriation, has led to the UK’s primary index… (gaining) favour with investors,” said Richard Hunter, head of markets at Interactive Investor.
London and its European peers — along with Wall Street — have won support this week also as traders forecast more interest-rate cuts this year from major central banks.
Indices have also rallied thanks to some positive company earnings and easing geopolitical concerns.
Add Comment