FTSE 100 reached a new intraday record high on Friday, driven by advancements in financials and mining sectors, as increasing anticipations for a Federal Reserve interest rate reduction lifted sentiment across international markets. The blue-chip index was up 0.6% as of 0936. The asset is poised for a 2% increase this week, marking its most significant ascent since April. The mid-cap index rose 0.7%, positioning itself for a 2.4% weekly gain.

Financial stocks emerged as the standout performers across both indexes, with the banking sector climbing 1.4% and investment banking shares surging 1.3%. Precious metal miners Fresnillo and Endeavour Mining were among the FTSE 100’s top performers, gaining over 2% each due to rising gold prices. While the benchmark reached an intraday peak on Thursday, it ultimately relinquished its gains to conclude in negative territory. The blue-chip index’s limited exposure to technology sectors resulted in the market’s inability to fully leverage the tech-driven rally that had driven U.S. stocks to new highs in the preceding session.

In the context of the ongoing U.S. government shutdown, the release of the much-anticipated jobs report, which was initially set for Friday, appears increasingly improbable. Market participants are currently factoring in a highly probable Federal Reserve rate cut later this month, in light of the lackluster private payrolls data released earlier this week. In the UK, a recent survey indicated that business activity expanded at its most sluggish rate in five months during September, as both companies and consumers deferred significant spending decisions, anticipating potential impacts from increased taxes in the upcoming November budget. It is anticipated that Finance Minister Rachel Reeves will be required to either raise taxes or cut spending in the forthcoming annual budget.

Among individual stocks, pub group J D Wetherspoon fell 4.7%, placing it at the bottom of the mid-cap index after flagging higher costs due to potential tax increases and national insurance contributions. Technical products and services distributor Diploma gained 2.6% following a rating upgrade by brokerage firm RBC, which revised its assessment from “underperform” to “outperform”.