FTSE 100 Soars to Record High Amid Market Calm

The FTSE 100 reached a new record high, bolstered by reduced tariff threats from President Trump. The index gained 6.2% in January, driven by surges in British engineering stocks and the aerospace sector. Analysts now anticipate key economic data ahead of the Bank of England's rate decision.

The FTSE 100 achieved a new record high as Britain's leading index climbed to 8,692.84, reflecting a 6.2% increase for January. This surge, the highest in over two years, comes as global markets react to U.S. President Donald Trump's decision not to impose strict tariffs immediately.

Strong performances in the British engineering and aerospace sectors contributed notably to the gains. Shares of Smiths Group soared 12% following news of a strategic business spin-off urged by activist investors. However, precious metal miners saw a slight dip after a recent rally.

Meanwhile, domestic mid-cap stocks also edged higher, and the housing market showed signs of slowing with minimal price growth. Investors are closely monitoring the upcoming Bank of England interest rate decision as economic indicators suggest further pressure on mortgage rates into 2025.

(With inputs from agencies.)