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FTSE 100 hits new closing high for second day in a row | FTSE 100 hits new closing high for second day in a row |
(35 minutes later) | |
Britain’s blue-chip share index has closed at a new all-time high for a second day running. | |
The FTSE 100 jumped to close at 7,120.26 on Thursday night,14 points above the previous record set on Wednesday. | |
Precious metal miners such as Randgold Resources and Fresnillo climbed more than 4 per cent pushing the index into record territory. | |
The rally was spurred by the price of gold, which rose 1.3 per cent to 1156.9 US dollars an ounce. | |
Engineering firms Ashtead and Rolls Royce were the biggest fallers, dropping 2.4 per cent to 1,569p and 1.75 per cent to 674p respectively. | |
It comes after the FTSE100 hit a record high close on Wednesday, beating the 7103.98 point mark set in April 2015, boosted in part by the collapse in the value of the pound since the Brexit vote. | |
The pound is down about 10 per cent against the euro since the EU referendum in June, and is 17 per cent weaker against the US dollar. | |
Sterling's post referendum slump has boosted the FTSE 100 as many companies make a significant proportion of their profits abroad. | |
This means these companies make more money when sterling is weak. | |
David Cheetham, market analyst at online trading group XTB, said: “Observers of the markets have for many years noticed a strong propensity for stocks to rise in the period between Christmas and the New Year and this phenomenon appears to be playing out once more.” |