Signs that US interest rates will rise at a slower than expected pace pushed the FTSE 100 Index to a new record in the wake of yesterday’s Budget rally.
London’s top-flight reached 6982 in early trading before falling back towards it opening mark at 7.5 points higher at 6952.4.
The value of London’s leading shares climbed by 1.6% on Wednesday after the Chancellor confirmed tax breaks for the beleaguered North Sea energy industry as well as a boost for house builders with help for first-time buyers.
The performance was the strongest percentage rise for the index since January and fuelled expectations that the index will soon set a new landmark above 7000.
The Dow Jones Industrial Average finished more than 1% higher last night after the US Federal Reserve cooled expectations over higher interest rates by highlighting the impact of the strong dollar on exports.
This failed to ease pressure on the pound against the US dollar after official figures yesterday showed a slowdown in wage growth and Bank of England minutes signalled caution over low inflation.
The pound stood at 1.48 versus the US dollar but was still higher against the euro at 1.39.
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