The stock index closes at a high as global inflation and interest rate fears ease.
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By Faarea Masud
Business reporter
By Michael Race
Business reporter, BBC News
Markets respond positively to Hunt statement
The pound rose and government borrowing costs fell as investors welcomed the news that Chancellor Jeremy Hunt is reversing almost all tax measures set out in the mini-budget.
Sterling extended early morning gains against the dollar, and is now trading at around $1.13.
Copyright: BBCThe news also saw the interest rate - or yield - on UK government bonds fall, making government borrowing less expensive.
The yield on bonds due to be repaid in 30 years' time, which dropped when markets opened on Monday morning, fell further after Hunt’s statement, to 4.35%.
Meanwhile, the yield on bonds due to be repaid in five years' time, which underpins the cost of new five-year fixed rate mortgages, also fell to 3.86%.
The drop in yields suggests financial markets are welcoming the changes to economic plans.
Copyright: .By Dearbail Jordan & Michael Race
Business reporter, BBC News
By Michael Race
Business reporter, BBC News
By Noor Nanji
Business reporter, BBC News
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Business reporter, BBC News
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Business reporter, BBC News
By Russell Hotten
BBC News
By Russell Hotten
BBC News