UK FTSE 100 index soars to fresh record highs after positive updates

UK stocks rallied in London on Monday, expanding their gains for the third straight session with the FTSE 100 index scaling a fresh record high following a batch of positive corporate updates, including a report about a massive purchase deal. 

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UK stocks continue to achieve successive profits amid a strong risk appetite as the Bank of England approaches interest rate cuts.

The Price 

The FTSE 100 index rallied by 49.31 points, or 0.61% to 8,189 points, a record high, with a session-low at 8,136. 

The index closed Friday up 0.75%, while marking a 3.1% profit last week, the largest such profit since September 2023 as the pound weakened while most global stock indices gained ground. 

The Difficult Part 

It looks like UK stocks have finally passed through the difficult stage of recent losses and weakness, with indicators showing UK inflation is subdued, while the pound continues to weaken. 

Bullish Market 

The Newton investment management company’s chief analyst David Comming said in earlier remarks that there are a lot of attractive companies right now, as this recent surge doesn’t look short-term. He believes the market is on a solid positive footing. 

Positive Updates 

A Reuters report indicated that BHP is considering presenting a better offer to buy the Anglo American company, after the previous offer of $39 billion was rebuffed. 

Analysts have indicated that the previous offer was too low, and BHP will have to increase the sum or it won’t be able to snag the deal. 

Otherwise, Atrazeneca’s stock price rallied by 1% after the giant pharmaceutical company announced progress in two medications for breast cancer.

UK Rates

A recent Bloomberg poll indicated that the Bank of England will likely start cutting interest rates in June, with five total rate cuts likely by the end of the year. 

Markets have fully priced in an August rate cut, and a September rate cut, with a 70% chance of a June rate cut.