The FTSE 100 stayed on course to end the day above its record high, lifted by upbeat signals from US officials over trade negotiations with China.
The blue-chip index was last up 0.6% at 8,881.85 after US Commerce Secretary Howard Lutnick said discussions were “going well”.
Adding to the momentum, new UK economic data showed a slowdown in wage growth and a rise in unemployment, now at its highest level in nearly four years for the three months to April. This has led markets to fully price in two Bank of England rate cuts by year-end.
Elizabeth Martins, senior UK economist at HSBC Global Research, noted that while policymakers seemed hesitant about a May rate cut, today’s data could “tip the balance in favour of an August cut”.
Housebuilders led the gains across both the FTSE 100 and FTSE 250, buoyed by the prospect of lower borrowing costs. Persimmon topped the FTSE 100, climbing 4.9%, followed by Barratt Redrow up 4%, and Taylor Wimpey rising 3.5%.
Marks & Spencer also advanced 4% after resuming online orders for the first time in over six weeks, following disruption caused by a cyberattack.
In contrast, precious metal miners lagged. Hochschild Mining plunged nearly 22%, the steepest one-day drop since November 2021, after announcing a six-week shutdown of its Mara Rosa mine in Brazil due to disappointing gold output, pushing it to the bottom of the FTSE 250.
