FTSE 100 Dips Below 8,000 Mark but Remains Near All-Time High

The FTSE 100 experienced a slight retreat from the 8,000 mark but continued to hover near its all-time high, maintaining positive momentum.

Around 11:30 am, the capital's premier index was up 0.26 percent at 7,973.13. Earlier in the day, it briefly surged to 8,014, surpassing its previous highest closing price of 8,012.53 recorded in February last year.

Although the FTSE 100's record intraday price stands at 8,047.06, achieved on 16 February last year, today's performance was buoyed by strong showings from mining and oil giants, benefiting from elevated commodity prices.

Fresnillo saw gains of up to 6.8 percent, while BP, Shell, Glencore, and Anglo American all saw increases ranging between two and three percent.

Despite the market's reassessment of interest rate expectations, with fewer cuts now priced in compared to the beginning of the year, the FTSE 100 has managed to advance by 3.7 percent year-to-date.

Initially, investors were anticipating significant interest rate cuts from both the Federal Reserve and the Bank of England, with up to six and five cuts respectively forecasted for the year. However, current expectations suggest only three cuts from each institution.

The recent market rally gained further momentum in March following the Federal Reserve's reaffirmation of its expectation for three rate cuts, despite forecasts indicating higher inflation and growth.

Similarly, the Bank of England's latest rate decision, perceived as dovish, saw the Monetary Policy Committee's two hawkish members voting to maintain interest rates rather than increasing them.

Market sentiment now points to June as the probable starting point for the global interest rate cutting cycle.

Source: City A.M.