UK Market Soars to Record High: Financials and Economic Growth Drive Optimism

The FTSE 100 reached a new peak as robust economic data highlighted the UK's resilience, buoyed by improved financial earnings. November saw 0.3% growth, boosted by Jaguar Land Rover's production recovery. Major financial firms surged, leading to significant index gains while Dunelm posted a disappointing forecast.

The UK's leading FTSE 100 index shot to an unprecedented high, closing Thursday up by 0.56% at 10,245.99 points, driven by positive data and a flourishing financial sector. Meanwhile, the mid-cap index soared 1.4%, marking a four-year high, fueling optimism about Britain's economic tenacity.

November's GDP grew 0.3%, the fastest pace since June, sparked by Jaguar Land Rover's full production rebound post-cyberattack. This economic upturn, as noted by Axel Rudolph, a senior financial analyst at IG, could trigger capital flows into major UK indices, fostering a favorable near-term outlook.

Despite the upbeat market, traders still anticipate around 40 basis points of Bank of England rate cuts by September. The day saw substantial movements in the financial sector, with Ashmore Group topping the FTSE 250 with a 23% leap, and Schroders reporting profit forecasts above expectations.

(With inputs from agencies.)