London’s FTSE 100 hit a new record high on Friday as investors welcomed the Bank of England’s dovish tone as Britain’s economy grew better than expected in the first quarter of this year.
At 0715 GMT, the FTSE 100 rose 0.5%, hitting a new high and surpassing the 8400 mark. The mid-cap FTSE 250 rose 0.3%.
Both indexes were set to post a third straight week of gains, helped by a weaker pound.
The British economy emerged from recession with better-than-expected growth of 0.6% in the first quarter.
Investors continued to welcome the dovish tone adopted by the BoE on Thursday, which paved the way for an interest rate cut as early as next month.
Precious metals miners were the biggest gainer among sectors as the price of gold rose 1%. The index increased by 1.8%. [GOL/]
Anglo American jumped 1.4% after Rio Tinto considered a bid for the miner, according to a report from the Australian Financial Review.
IAG gained 0.8% after the British Airways owner reported better-than-expected first-quarter profits.
