The FTSE 100 extended its gains after Wall Street hit record highs overnight on renewed economic optimism and China rallied on government stimulus measures.
The blue chip index gained 0.4%, or 36 points, to 8,296 after both the S&P 500 and Dow Jones closed at fresh highs following indications of support from Federal Reserve officials for further cuts in US interest rates after last week’s 0.5% reduction.
Richard Hunter, head of markets at Interactive Investor, said policymakers had justified their bumper rate cut by ‘pointing to a desire to sustain the current health of the economy now that inflation is almost under control’.
