London Stock Market Hits Record High

London, (APP - UrduPoint / Pakistan Point News - 23rd Apr, 2024) London's FTSE 100 stocks index hit record highs Tuesday, catching up with major global peers which have struck all-time peaks this year as inflation cools.

The FTSE reached 8,076.52 points shortly after the open, surpassing a record 8,047.06 struck in February last year.

The London index has in recent weeks been lifted by weakening of the pound, particularly against the Dollar, as markets anticipate cuts to UK interest rates in the coming months thanks to slowing price rises.

Conversely, stubbornly-high inflation in the United States has reduced expectations of multiple cuts to borrowing costs from the Federal Reserve this year.

Globally, sentiment is boosted by easing concerns over the middle East situation and thanks to some strong company earnings.

A weaker pound has benefited British multinationals as they get more from the Dollars they earn abroad.

"Around 70 percent of FTSE 100 earnings come from overseas, making them more profitable when translated back to sterling," noted Richard Hunter, head of stocks at Interactive Investor.

"The strength among retailers has provided another spring in the step to investors."

The FTSE eased back after achieving a new pinnacle Tuesday, trading at 8,060.28 points, up 0.5 percent compared with Monday's record close of 8,023.87 points.