London’s FTSE 100 climbed about 1% to 10,920 points on Thursday, setting a new record closing high and surpassing its previous peak from February. The advance came as bond yields continued to fall and oil prices hovered near two-month lows, while investors awaited the Bank of England’s latest monetary policy decision. Sentiment was further supported by a sector rotation out of technology stocks and into other areas of the market, following concerns about possible new regulations on chipmakers after the Democrats’ victory in the US.
UK policymakers are widely expected to raise interest rates for the first time since 2023, responding to persistent inflationary pressures fuelled by surging energy costs. However, they are also likely to signal caution and seek to rein in expectations for multiple additional rate increases next year.
On the corporate front, Next edged up around 0.5% after upgrading its sales outlook. Diageo gained more than 3% after posting first-quarter sales growth, beating analyst forecasts that had anticipated a decline.
