FTSE 100 hits fresh record high on rate cut optimism

(Reuters) -The UK's FTSE 100 closed at a fresh record high as investors grew hopeful of future interest rate cuts by the Bank of England, while AstraZeneca's shares gained following positive drug trial results.

The blue-chip FTSE 100 rose 0.6% to close at 8998.06 points, nearing the 9000-points mark, while the domestically oriented FTSE 250 index added 0.5%.

AstraZeneca climbed 2% after the pharmaceutical giant said its experimental drug baxdrostat succeeded in lowering high blood pressure in a late-stage study of people whose condition was hard to control or treat.

Associated British Foods rose 2% after brokerage Panmure Liberum upgraded the retailer's stock to "buy."

Britain's labour market cooled sharply in June and the number of people available for work jumped at the fastest pace since the COVID-19 pandemic, according to data also watched by the Bank of England.

The BoE is expected to cut interest rates next month for the fifth time since last August, with traders betting on an 89% chance of a 25 bps reduction, as per data compiled by LSEG.

The country's inflation figures and employment data later this week are likely to offer fresh cues on the central bank's rate path.

Investors will look out for fresh notes on the nation's fiscal health when finance minister Rachel Reeves, alongside BoE Governor Andrew Bailey, gives the annual Mansion House speech to London's financial sector on Tuesday.

The commodity-heavy FTSE 100 touched fresh peaks last week as U.S. President Donald Trump's plans to impose tariffs on key trading partners, as well as copper prices, sent commodity prices higher, in turn lifting miners such as Glencore and Rio Tinto.

The European Union accused the U.S. of resisting efforts to agree a trade deal and warned of countermeasures if no deal was struck to avoid the "absolutely unacceptable" 30% tariffs Trump has threatened to impose from August 1.

Among other stocks, Ashmore <ASHM.L> gained 1.4% after the emerging markets-focussed asset manager reported slower quarterly net outflows.

text_section_type="notes"     For related prices, Reuters users may click on - *    UK stock report [.L]       FTSE index:    techMARK 100 index: FTSE futures:    Gilt futures: Smallcap index:    FTSE 250 index: FTSE 350 index:    Market digest: Top 10 by vol:    Top price gainers: Top % gainers:    Top price losers: Top % losers:          * For related news, click on - *   UK hot stocks: [HOT] and [GB] Wall Street: [.N]   Gilts report: [GB/] Euro bond report [GVD/EUR]   Pan European stock report: [.EU]   Tokyo stocks: [.T] HK stocks: [.HK]   Sterling report: [GBP/] Dollar report: [USD/]         * For company prices, click on - *   Company directory: By sector:          * For pan-European market data, click on - *   European Equities speed guide................    FTSE Eurotop 300 index...........................    DJ STOXX index...................................    Top 10 STOXX sectors........................    Top 10 EUROSTOXX sectors...................    Top 10 Eurotop 300 sectors..................    Top 25 European pct gainers....................    Top 25 European pct losers.....................  

(Reporting by Ankita Yadav in Bengaluru; Editing by Sahal Muhammed and Sharon Singleton)