The FTSE 100 experienced a positive session, climbing 0.5% to surpass 10,600 and achieve a new record high. This surge was primarily fueled by softer-than-expected UK inflation data, which amplified anticipation of interest rate cuts by the Bank of England. Several sectors, including defence and mining, contributed significantly to the index’s upward trajectory.
- The FTSE 100 rose 0.5% to above 10,600, reaching a record high.
- UK inflation slowed to 3%, the lowest since March 2025.
- Defence stocks saw significant gains, with BAE Systems up around 4%.
- Miners advanced due to rising metals prices; Glencore gained 2.6%.
The market’s performance reflects a positive response to indicators suggesting potential easing of monetary policy. Sectors that are typically sensitive to interest rate movements, like mining and defence, experienced notable gains. The overall sentiment surrounding the asset seems optimistic, driven by expectations of economic conditions becoming more favorable.