FTSE 100 reaches new 14-month high

Market report

The shares in London’s top market index hit another 14-month high with little impact from Thursday’s big decisions from the Bank of England.

The FTSE ended the day firmly in the green, although a little tempered from Wednesday’s rocketing market.

By the end of the day the index had risen 0.5%, or nearly 37 points, to 7,076.17.

The Bank of England decided to hold both interest rates and its quantitative easing programme unchanged on Thursday, but it had little effect on the markets, said Spreadex analyst Connor Campbell.

“The Bank of England failed to help either the FTSE or the pound this Thursday, though the MPC (Monetary Policy Committee) did provoke a rollercoaster of reactions as it progressed through its various headlines,’’ he said.

While the whole committee voted to keep interest rates at 0.1%, chief economist Andy Haldane registered a dissenting voice against the £895 billion quantitative easing package.

The Bank also decided to slash the size of its weekly bond purchases by £1 billion to £3.4 billion.

Mr Campbell said: “The BOE was keen to stress that this move should ‘not be interpreted as a change in the stance of monetary policy’. Nevertheless, this decision, and the direction of Haldane’s vote, could be laying the groundwork for a more substantial change in the coming months.’’

The FTSE was also likely helped by a falling pound, which bought 1.3879 dollars by the end of the day, a 0.2% drop. Sterling also fell 0.6% to 1.1518 euros.

The FTSE’S rise was ahead of its European counterparts. The Dax in Germany rose 0.2%, while the Paris Cac was up 0.3%.

In the US markets were more positive. The Dow Jones had gained 0.6% and the S&P 500 was up 0.4% shortly after European markets closed.

Investors in Superdry were pleased by the company’s latest update, sending shares soaring nearly 19% after the retailer revealed “light at the end of the tunnel’’ with a rise in revenue in recent months.

One of the day’s other big success stories was Reach. The publisher of the Daily Mirror and other newspapers said that it will likely do better than analysts expect, sending shares up 6.6% by the end of the day.

Next also ended the day in healthy territory, up 1.7% after bosses raised profit targets following a strong few months.