London's FTSE 100 extends record streak as UK exits recession

The British economy exited a recession with a better-than-expected 0.6% growth in the first quarter, while investors continued to cheer the dovish tone the BoE took on Thursday after it paved the way for the start of interest rate cuts as soon as next month. Among sectors, industrial and precious metal miners led the gains, rising 1.8% each as prices of gold and most base metals advanced on Friday.

London's FTSE 100 hit a fresh record high on Friday as investors cheered the dovish tone of the Bank of England, while the British economy grew better than expected in the first quarter this year.

The blue-chip FTSE 100 climbed 0.6%, notching an all-new peak and breaching the 8,400 mark. The mid-cap FTSE 250 inched up 0.4% Both indexes were set to log a third consecutive week of gains, aided by a weaker pound that fell to a two-week low on Thursday and last steadied at $1.25335.

"It feels as if the mood music on rates is changing. The UK market still feels very cheap on earnings and it's still very unloved. If people decide to change their minds, it could be quite interesting," said Russ Mould, investment director at AJ Bell. The British economy exited a recession with a better-than-expected 0.6% growth in the first quarter, while investors continued to cheer the dovish tone the BoE took on Thursday after it paved the way for the start of interest rate cuts as soon as next month.

Among sectors, industrial and precious metal miners led the gains, rising 1.8% each as prices of gold and most base metals advanced on Friday. Major energy firms like BP and Shell also elevated the FTSE 100 as oil prices rose after data from China and the U.S. pointed to higher demand.

Anglo American rose 1.8% after Rio Tinto considered an offer for the miner, according to a report in the Australian Financial Review. Vodafone Group jumped 2.2% after the British government made a final order to conditionally approve the proposed merger between the telecom company's UK operation and Hutchison's Three UK.

Rightmove Plc was the biggest drag on the benchmark index with a 5.3% fall after the real estate portal cut its Average Revenue Per Advertiser (ARPA) growth.

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