The UK’s benchmark stock index has hit a new record high.
The FTSE 100 index of the most valuable companies on the London Stock Exchange closed at 8,505.69, breaking the record set last May.
It had already surpassed its intraday high earlier on Friday, meaning it reached a never-before-seen high during trading hours.
The weakening pound sterling has boosted many of the 100 companies making up the top-tier index.
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Most are not based in the UK, so a less valuable pound sterling means their sterling-denominated shares are cheaper to buy for people using other currencies, usually the US dollar.
This gives stocks a better value, which encourages people to buy more of them. This increased demand has pushed prices and the FTSE 100 up.
The new record is also driven by market expectations for further interest rate cuts in 2025, which would make borrowing cheaper and likely boost spending.
The British pound remained below $1.22 for much of Friday. It is steadily declining from its value of $1.34 at the end of September.
FTSE stands for Financial Times Stock Exchange.
It’s a good weekend for markets, completely reversing the rise in borrowing costs that has hit Chancellor Rachel Reeves over the past ten days.
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