FTSE 100 touches record high as growing rate cut bets dent sterling
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The UK's blue-chip FTSE 100 hit an all-time high on Friday, supported by a weaker pound after much softer than expected retail sales data boosted expectations of an interest rate cut next month. The FTSE 100 rose 1.4% to hit record highs and logged its fourth straight weekly gain. The midcap index rose 0.3% and registered its best weekly performance since October 2023. British retail sales fell unexpectedly in December, according to data that raised the risk of an economic contraction in the fourth quarter, adding to the challenges facing finance minister Rachel Reeves. Gilt yields moved lower across the curve, with the yield on 10-year notes easing to 4.661%. Sterling slid 0.6%, lifting shares of companies that earn most of their revenues overseas. Oil giant Shell rose 1.2%, while consumer goods company Unilever added 1.6%. Traders see an 82% chance of a 25-basis-point rate cut by the Bank of England (BoE) in February, and are pri...