FX.co ★ FTSE 100 Books Another Record

On Thursday, the FTSE 100 increased by 0.9% to reach a new high of 9138, surpassing its European counterparts amidst a wave of optimism surrounding discussions on tariffs. While the spotlight was on trade negotiations between the European Union and the United States, the UK and India finalized a significant trade agreement affecting tariffs on automobiles and alcohol. This agreement, anticipated to inject £4.8 billion into the UK's economy, was signed just outside London by Trade Secretary Jonathan Reynolds and his Indian counterpart, Piyush Goyal.

The markets received further boosts from robust corporate earnings and a depreciating pound. BT's shares soared by 10.5% following the release of promising results, while Reckitt Benckiser saw a 10.3% increase after updating its guidance post the sale of a business unit, with Jefferies noting impressive sales in its major brands. Additionally, Howden Joinery's shares climbed by 8.6% due to unexpectedly strong growth.

On an economic note, the UK's services and composite PMI data fell short of expectations, signaling a deceleration in private sector expansion. However, manufacturing data outperformed forecasts, with the rate of contraction decreasing more than anticipated. Meanwhile, as forecasted, the European Central Bank (ECB) maintained interest rates at 2%.