A WEEK of anticipation finally ended yesterday as the FTSE 100 index recorded both an all time intra-day peak and a new closing high.
Some more favourable economic data, the expiry of August index options, a decent start on Wall Street and a general sense of relief that the market has surmounted its brief sell off in July all combined to lift shares.
The day's British statistic concerned the public sector finances for July, which were much better than expected. The government repaid £1.66 billion in the month, against predictions that revenues and expenditure would balance.
The news lifted gilts, which were also helped by a rally in German bunds, as investors became increasingly confident that the Bundesbank would cut the repo rate next week.
Shares also moved ahead and were given a further push by the derivatives market, where August's index options expired midmorning. A decent start on Wall Street, where the Dow Jones Industrial Average was around 20 points ahead by the close of the London market, gave British shares their second wind.
Another all time intra day high of 3,873.1 was chalked up, and by the end of the session, Footsie had recorded its eleventh gain in 3 trading sessions and achieved its first closing peak since April 9th.
