FTSE 100 Near Highs Amid Sterling Slide and Strong Earnings

The UK's main stock indexes saw a slight rise due to a sterling slide and strong earnings from companies like Abrdn and Premier Foods. The FTSE 100 remained near record highs as Lloyds Banking Group benefited from government support in a mis-selling finance case.

The UK's primary stock indexes saw an increase on Tuesday, driven by a decline in sterling, keeping the FTSE 100 close to its historical highs. Positive earnings reports from companies including Abrdn and Premier Foods also contributed to the rise, especially boosting the midcap index.

The FTSE 100's rise of 0.1% was observed by 1043 GMT, nearing its peak of 8542.59 points reached on Monday. Global stock markets showed diminishing activity after the inauguration of U.S. President Donald Trump, as investors considered implications of new trade and tariff plans.

A noteworthy 0.67% drop in sterling against the dollar followed the release of UK jobless data, posting a slight rise to 4.4% - the highest since May. In contrast, pay growth figures showcased resilience. Traders speculate an imminent rate cut from the BoE, with an 84% chance set for February 6 and a total easing of 62 bps by 2025's end.

(With inputs from agencies.)