While the FTSE 100 powers higher, Wall Street remains contained following its rebound earlier in the week, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 record high comes despite gloomy BoE
The difference between the FTSE 100 and the UK economy have been starkly laid bare today. While the index has surged to new record highs thanks to solid earnings today and yesterday from index heavyweights AstraZeneca and GSK, the outlook for UK plc continues to be grim. Sterling’s weakness has undoubtedly boosted the index’s attractiveness for global investors, who continue to relish the opportunity to go bargain-hunting in UK names. Any relief among individual Britons regarding lower rates is likely to be tempered by the warnings about weaker growth and higher inflation.
Wall Street rally slows
US stocks have run into some turbulence after their rebound from Monday’s lows, weighed down by some gloomier earnings and the impending payrolls report. Investors have been able to put tariff worries aside after Monday’s rout, but they are sure to rear their head again, and the damage to stocks next time might be more long-lasting.
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