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The FTSE 100 has ticked up to another new all-time high this morning, ahead of the Bank of England’s decision over whether to cut interest rates later today.
The FTSE 100 opened 0.8 per cent up this morning at 8,695.24, pushing the index just above the record 8,692 it achieved last week.
The FTSE 100 has now addded 5.2 per cent since the start of 2025 and more than 13 per cent in the last year.
Strong performers on the FTSE 100 this morning included miners Anglo American and Antofagasta, both up more than two per cent, along with Astrazeneca, which reported strong revenue growth in 2024 this morning.
“UK markets are kicking off the day with a spring in their step, as the US tariff chatter finally quietens down, letting investors zero in on a wave of big earnings reports and hopes for another Bank of England rate cut” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
The FTSE 100 surge comes ahead of a key Bank of England decision later today, with the central bank widely expected to slash rates by 0.25 per cent.
Gilts yields have been falling rapidly in the run-up to the decision, with 10-year yields dropping nine basis points yesterday in a fourth straight week of decline.
Markets are now pricing in around 85 basis points of cuts during 2025, more than double what they had been expecting less than a month ago.
The looming decision has also pushed up the FTSE 250, which opened 0.44 per cent up, but it is still 3.5 per cent below the level it reached last summer.
Strong performers on the FTSE 250 included BBGI Global Infrastructure, after the investment trust announced a £1bn takeover from a Canadian pension fund, and Babcock International.
