FTSE 100 Hits Record Amid AstraZeneca Surge and BoE Rate Cuts

AstraZeneca's strong results boosted the FTSE 100 to a record close, aided by the Bank of England's rate cut. The BoE's decision, fueled by dovish sentiments, also saw expectations for further cuts rise. However, growth outlooks were halved, fueling concerns over economic stability.

In a significant move, strong returns from AstraZeneca led London's FTSE 100 to a record close, supported by a 25 basis-point interest rate cut from the Bank of England. The BoE's dovish stance suggests potential for further rate reductions, raising expectations among traders.

The export-driven FTSE 100 climbed 1.2%, aided by a weakening pound, while the FTSE 250 advanced 1%. The interest rate was adjusted to 4.5%, with two policymakers advocating for more substantial cuts. This reflects a strategic easing bias among MPC members, leaving room for further financial adjustments this year.

Despite AstraZeneca's success and the market's positive response, the broader UK economic picture remains challenging. With reduced growth projections for 2025 and a rise in inflation forecasts, concerns persist. Sterling faltered, and government bond yields dipped, highlighting the economic hurdles faced by finance minister Rachel Reeves.