The FTSE 100 hit a record intraday high today as fears of a trade war between the US and China dissipated and the pound continued its downward trajectory.
London’s top flight broke above 7,800 points for the first time as markets were buoyed by news overnight that the global superpowers put a hold on imposing punitive import tariffs on each others’ goods.
The index was up 47 points, or 0.6%, at 7,826.34 in morning trade.
Neil Wilson, chief market analyst at markets.com, said: “The FTSE 100 notched up a fresh record high, rising clear of 7,800 for the first time as the feel-good factor from the trade war truce bolstered risk sentiment and a weaker pound delivered the usual shot of adrenaline for the blue chips.
“It looks like progress on talks between China and the US means we are not about to descend into a punitive trade war.
“Whilst there is still a long way to go and nothing is agreed until everything is agreed, there has undoubtedly been solid progress and the sense of relief in equity markets is palpable.”
Among the biggest risers were G4S, Astrazeneca, Marks & Spencer and WPP.
The soaring FTSE, however, came at the expense of a fall in the pound, which was trading 0.5% down at 1.34 US dollars.
Against the euro, sterling was flat at 1.14 euros.
“We must note that the FTSE’s gains of late are probably more attributable to a weaker pound as the dollar rallies across the board,” Mr Wilson added.
BT, British Land and MicroFocus were among the few stocks trading in negative territory.