FTSE 100 Hits New High Amid UK Labour Market Shifts

The FTSE 100 reached a record high as weak UK labour market data fueled hopes for Bank of England rate cuts. AstraZeneca's strong performance contributed significantly, supported by expectations of economic policy shifts and oil price influences. Key players like Vodafone and Oxford Instruments also showed notable market movements.

The FTSE 100 surged to a record high for the second consecutive session on Tuesday, propelled by weak UK labour market data that stoked hopes for rate cuts from the Bank of England. Drugmaker AstraZeneca achieved an all-time high, reinforcing its status as the UK's largest listed stock.

The blue-chip index closed up 1.2% at 9,899.6 points, supported by a 0.8% gain in the mid-cap FTSE 250. AstraZeneca soared 2.6% to expand upon the momentum gained from last week's robust quarterly results. Market expectations for a December BoE rate cut heightened as Britain's unemployment hit 5%, a four-year peak, with wage growth slowing.

While the pound initially dipped against the dollar, it later stabilized. Notable stock performances included a 2.5% rise in pharma and healthcare indexes, with AstraZeneca and GSK leading the charge. Meanwhile, energy stocks like Shell and BP were lifted by higher oil prices. Industrial players such as Oxford Instruments saw impressive gains, although Hilton Food reported a sharp decline.

(With inputs from agencies.)