The FTSE 100 reached a new record high, driven by gains in banking and financial stocks, overcoming weaker-than-expected UK GDP data and declines in property shares. Strong corporate news, especially takeover activity, played a significant role in boosting investor sentiment. However, the index lagged behind some European counterparts due to the poor performance of property stocks and a decline in Unilever shares.
- FTSE 100 traded at a fresh record.
- UK GDP rose 0.1% in the fourth quarter, below expectations.
- Schroders surged after agreeing to a £9.9 billion takeover by Nuveen.
- St James’s Place rebounded, supporting the financial sector.
- RELX earnings provided additional support to the index.
- Property stocks like British Land and Land Securities declined.
- Unilever weighed on the index, falling due to conservative sales growth guidance.
The mixed performance suggests underlying strength in certain sectors, particularly financials, is capable of pushing the index to new highs despite headwinds. The positive reaction to corporate news and M&A activity indicates investor appetite for undervalued firms. However, weaknesses in the property sector and cautious outlooks from major players like Unilever highlight vulnerabilities that could limit future gains.