Another record intra-day high for FTSE 100 as pound climbs

The FTSE 100 moved 0.33%, or 25.98 points, higher to finish at 7,911.15.

The City of London as seen from Potters Field, London (Jonathan Brady/PA) (PA Archive)

The FTSE 100 set another record intra-day high as it continued its positive march, while the pound also had a bumper session.

The index pulled away from its earlier peak by the close of play, but still made strong gains after it was buoyed by positive sessions for multinationals such as AstraZeneca and Standard Chartered.

London’s top flight moved 0.33%, or 25.98 points, higher to finish at 7,911.15. It had earlier struck an intra-day high of 7,949.57.

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been another positive day for the FTSE 100 and another record high, with the 8,000-level continuing to act as a magnet for investor sentiment, and a market that seems to just want to go higher.

“We have seen the early morning momentum fade in a similar fashion to yesterday’s price action, which does suggest an element of caution, but we are still putting in higher lows.”

Across the Channel, the Dax also had a strong showing after consumer price index (CPI) inflation in Germany fell from 9.6% to 9.2% in January.

The Dax rose by 0.75%, and the French Cac 40 improved by 0.97% at close.

In the US, the markets rebounded after Wednesday’s losses despite the latest set of weekly jobs figures pointing towards a tight labour market.

Meanwhile, sterling jumped after Andrew Bailey, the governor of the Bank of England, said he expects inflation to fall rapidly by the end of the year but said there were still concerns over its persistence.

The pound was up by around 0.69% to 1.215 US dollars, and by 0.32% to 1.130 euros at market close in London.

In company news, Standard Chartered leapt in value after reports emerged that the largest bank in the United Arab Emirates could be reconsidering a multibillion-dollar takeover offer.

First Abu Dhabi Bank (FAB) said in December that it had been mulling a takeover bid, but that the possible offer had been abandoned.

Shares bounced 78.8p higher to 767.6p after Bloomberg reported that it could once again consider a bid.

Drugmaker AstraZeneca also made notable gains after it told shareholders it is poised to grow in 2023, as it moves from dwindling Covid-related sales towards cancer and rare disease treatments.

AstraZeneca revealed it plans to deliver at least 15 new medicines this decade as it recorded pre-tax profits of 2.5 billion dollars (£2.1 billion). Shares closed up 438p at 11,190p.

Ladbrokes parent company Entain slid after previous suitor MGM Resorts told investors it had no current interest in a takeover for the UK gambling giant.

MGM chief executive Bill Hornbuckle said the business had “moved on” after a takeover attempt had been rebuffed in 2021. Entain closed down 219.5p at 1,348p.

The price of oil edged back after US oil inventories rose to their highest levels in months.

Brent crude oil decreased by 1.22% to 83.99 US dollars (£69.10) per barrel when the London markets closed.

The biggest risers in the FTSE 100 were Standard Chartered, up 78.8p at 767.6p, AstraZeneca, up 438p at 11,190p, BP, up 11.8p at 545p, Legal & General, up 3.3p at 256.6p, Abrdn, up 2.7p at 215.6p.

The biggest fallers of the session were Entain, down 219.5p at 1,348p, Glencore, down 20.3p at 526.6p, BT Group, down 4.3p at 133.9p, British American Tobacco, down 73p at 3,018p, and Fresnillo, down 18.8p at 801.6p.