The FTSE 100, the UK’s benchmark stock index, hit an all-time high on Monday, surpassing its previous record of 8,012.53 in February 2018. The index closed at 8,023.87 points, with a rise of 1.62% at the end of the day. The surge was driven by the strength of the dollar due to inflation sticking at a higher rate in the US, which means that US interest rates will remain high for a prolonged period. The weaker pound helps increase the value of business done by FTSE 100 companies overseas and makes their exports cheaper for foreign buyers.
Retailers M&S, Tesco, Sainsbury’s, and Ocado were among the big risers of the day due to the trend of increasing consumer confidence. Shares have been steadily ticking up in recent weeks on the expectation that the Bank of England may cut interest rates. Lower interest rates discourage saving and can increase borrowing for home purchases, helping to inject life back into the economy.
Market analysts believe that the “de-escalation in the Middle East” also played its part in driving the FTSE 100 to its new record high. Despite the possible risks and uncertainties in the global economic outlook, investors remain optimistic, with stock prices continuing their upward trend
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