UK FTSE 100 Index closes at record highs

The UK FTSE 100 Index rallied on Monday for the fourth straight session and closed at a record high amid a strong risk appetite, with the Bank of England preparing for a likely rate cut in the summer. 

The pound’s tumble against major rivals also underpinned the stocks of British exporters. 

Global sentiment improved as the concerns about an Iran-Israel conflict faded, especially following the latest remarks by the Iranian Foreign minister.  

The Index

The FTSE 100 index closed up 1.62%, or 128.02 points at 8,023, a record close high.

The previous record close happened on February 20, 2023 at 8,020. 

The FTSE 100 closed Friday up 0.25%, the third profit in a row as the pound weakened.

The index lost 1.25% last week, the second weekly loss in three weeks amid growing geopolitical tensions in the Middle East back then. 

UK Rates

A Bloomberg’s poll shows the Bank of England will likely start cutting UK interest rates starting June, with a total of 5 rate cuts expected this year. 

The odds of a June interest rate cut are up to 50%, with the markets now fully pricing in rate cuts in August and September. 

The Pound

The pound tumbled 0.6% against the dollar today, plumbing five-month lows at $1.2299 amid concerns about a widening UK-US rate gap. 

Iran-Israel Tension Soothes 

Iran’s foreign minister Hussein Amir said to the NBC that Tehran doesn’t intend to respond to Israel’s retaliation strike on Friday.