FTSE Hits Record High as Markets Shrug Off Oil Fears
The FTSE 100 climbed to a record intraday high, close to 11,000, before slipping back to finish broadly flat, as investors took heart from the Bank of England’s steady message and a partial retreat in oil prices. Gilt yields fell back below 5 per cent and sterling firmed after the noon decision, while traders pared bets on an early rate rise. Brent crude eased to the high $80s, off the near-$90 peak of the morning.
The calm reaction marked a turn from the previous day’s jitters, when the escalating war and spiking oil had rattled markets worldwide. The Bank’s signal that it saw no sign yet of the energy shock leaking into underlying inflation reassured investors and eased the pressure on government borrowing costs. A record for the FTSE, powered partly by energy and defence shares, sat oddly against the geopolitical gloom — a reminder that markets and the wider mood can diverge. Whether the poise lasts depends on the oil price and the war. Watch gilt yields and sterling as the next signposts.