Yahoo Finance FTSE 100 hits new record intraday high as pound falls
The FTSE 100 has hit a new record high, helped by a fall in the pound against the US dollar.
London's top-flight share index closed 119 points up at 7382, adding a total paper value of just over £30bn to its constituent companies.
The second-string FTSE 250 also hit a new all-time peak to stand at 18,983 at the end of trading while in the US, the Dow Jones crossed the 21,000 points barrier for the first time on opening and never looked back. It closed at 21,110.
The UK equity rally came as the pound, which has tumbled since the Brexit vote, fell by nearly a cent to a six-week low against the US dollar.
UK-listed global companies tend to be boosted by weakness in the pound since it bolsters the value of their foreign currency income when it is brought home.
The FTSE 100's rise saw it surpass a previous high seen in January.
That month saw the index enjoy a record-breaking winning streak, thanks to the weakness of the pound, plus hopes of an infrastructure spending boost by US President Donald Trump that lifted global stock indices.
The latest records came as investors were digesting Mr Trump's latest explanation of his plans, as well as signs from two Federal Reserve policy makers that US interest rates could rise as soon as this month.
That boosted the dollar, just as worse-than-expected UK manufacturing data weakened the chances of any Bank of England rate hike, weighing on the pound.
FTSE-listed banking stocks such as Barclays (LSE: BARC.L - news) , HSBC and Standard Chartered (BSE: 580001.BO - news) were also on the front foot on the prospect of a US rate hike, which would help them to boost profit margins.
The biggest gainers in London were stocks set to benefit from US infrastructure investment - with equipment firm Ashtead the largest riser while mining and bank shares also benefited.
US bank stocks, such as Goldman Sachs (NYSE: GS-PB - news) , were the biggest gainers when the US opened for business.
Neil Wilson, senior markets analyst at ETX Capital in London, said: As expected, the Dow Jones has soared through the 21,000 mark just over 3 weeks after breaking the 20k level for the first time.
"It's the quickest time ever to a 1,000-point milestone, beating the record set in 1999.
"But this looks a bit different to the dotcom boom and bust as we are dealing with a complete reversal in fund allocation in the form of a major shift away from bonds to equities.
"Today's boost is all down to the President's speech to Congress last night. Trump's rallying call to reignite the American spirit has produced the desired effect on the markets."
