FTSE 100 Hits New Heights Amid Pound's Slump

London stocks climbed on Friday with the FTSE 100 reaching all-time highs following a drop in the pound. The anticipation of a Bank of England rate cut, due to weak retail sales and falling gilt yields, bolstered market gains. Most sectors rose as British inflation cooled.

In a significant market move, London stocks surged on Friday, as the FTSE 100 index achieved record highs. This took place in the wake of the pound's decline, spurred by lackluster retail sales data that amplified expectations of a forthcoming interest rate cut by the Bank of England.

The blue-chip FTSE 100 climbed 1.1% by 1034 GMT, marking its fourth consecutive weekly ascent, while the midcap index edged up 0.2%, poised for its strongest weekly performance since October 2023. Pressured by adjusted retail sales figures, the pound dropped by 0.3% against the dollar.

UK equities enjoyed robust gains throughout the week, bolstered by unexpectedly slower British inflation and softer-than-anticipated core U.S. inflation. With significant interest in upcoming U.S. policy shifts under Trump, investors remained cautious amidst talk of potential trade tariffs.

(With inputs from agencies.)