FTSE 100 hits record high

The blue-chip FTSE 100 ended up 1.2 per cent at 10,686.18 points, marking a record high for a second straight day

London’s FTSE 100 closed at a new high on Wednesday after signs of cooling inflation bolstered expectations of a Bank of England rate cut as soon as March, while miners rallied on surging metal prices.

The blue-chip FTSE 100 ended up 1.2 per cent at 10,686.18 points, marking a record high for a second straight day. The FTSE 250 midcap index added 0.5 per cent to a four-year high.

London‑listed miners advanced, with Antofagasta and Anglo American up 10.5 per cent and 4.6 per cent respectively, leading the FTSE 100 as copper prices jumped.

Glencore added 4.4 per cent after reporting slightly lower annual earnings and announcing a $2 billion shareholder payout.

Investors keep piling into UK assets as these hardly feature battered technology or software stocks and instead benefit from high energy and precious metal prices, said Axel Rudolph, senior financial analyst at IG.

UK stock indices remain an attractive proposition for many investors, propelling the FTSE 100 to record highs, towards the 11,000 mark, he added.

Surging commodity stocks, stronger-than-expected earnings and expectations of monetary policy easing have helped UK equities rebound from last week’s selloff, when concerns about AI-driven disruption in several industries hit sentiment.

British inflation slowed to 3.0 per cent in January, its lowest in nearly a year, helped by softer rises in transport, food and non-alcoholic drinks, according to the Office for National Statistics.

Sterling slipped against the dollar as traders priced in almost an 85 per cent chance of a March rate cut. A soft labour-market report on Tuesday had already pressured the currency.