THE "feelgood factor" was well and truly in evidence in London's stock market yesterday as British shares shrugged off a poor opening by Wall Street and an indifferent showing by bonds.
Surging ahead to new all time intra day and closing highs, the FT-SE 100 index burst through the 3,900 level for the first time and settled a net 16.4 ahead at a record close of 3,907.5.
Gains were spread right across the board with the second-line stocks making equally rapid progress and the FT-SE Mid 250 index finishing the day 22.3 higher at 4,424.8. The junior index remains well short of its all time high, 4,586.6, however. Over the week, the FT-SE 100 rose 34.6, or 0.9 per cent, while the FT-SE Mid 250 moved up 58.3, or 1.3 per cent, over the period.
Dealers said the big investing institutions in London and elsewhere had focused on the excellent news on international interest rates this week.
The US Federal Reserve declined the opportunity to nudge US interest rates higher on Tuesday, while the Bundesbank surprised markets on Thursday by shaving 30 basis points off its repo rate, a move that was followed by the Bank of France and other European central banks.
The news on global interest rates and evidence from the most recent economic data led some British observers to suggest that a further rate cut in Britain may be on the cards later this year.
