\LONDON, May 4 — Britain’s FTSE 100 hit a fresh record high today, led by gains in homebuilder stocks, while softer-than-expected US jobs data boosted investor sentiment.
The blue-chip FTSE 100 ended the session up 0.5 per cent, after hitting a fresh record high of 8,213.49 points earlier in the day. The FTSE 250 touched its highest levels since February last year and ended 0.6 per cent higher. Both indexes registered a second straight week of gains.
Signs of easing inflation, hopes of early interest rate cuts by the Bank of England and attractive prices have helped boost investor interest in UK equities.
In the US, investors reacted favourably to the release of data showing slower-than-expected job growth and a dip in annual wage growth in April, which increased the likelihood that the Federal Reserve would cut interest rates later this year.
Rate-sensitive homebuilders led sectoral gains with a 4.3 per cent jump.
Meanwhile, UK service companies saw their activity surge to the highest level in almost a year in April despite increased cost pressures, signalling robust economic growth.
Anglo American advanced 1.2 per cent after Reuters reported that Glencore was considering making an offer for the mining giant, a move that could spark a bidding war.
“Investors are salivating at the possibility that there will be this massive bidding war for Anglo American. All miners now are looking at copper, thinking about how much demand has surged, and they’re looking to have the lion’s share of the market,” said Danni Hewson, head of financial analysis at AJ Bell.
Shares of InterContinental Hotels Group IHG.L led declines on the FTSE 100 with a 2.1 per cent drop after the company reported its first-quarter results.
Trainline surged 6.6 per cent to the top of FTSE 250 as the rail ticketing company said it sees strong net ticket sales growth. — Reuters
