The FTSE 100 has fallen from record highs achieved earlier in May as investors have pushed back expectations of when central banks will begin cutting interest rates. The index has fallen roughly 3 per cent since then, derailing a rally driven by a buoyant equity market globally amid the prospect of looming interest rate cuts. However, the FTSE 100 is not alone among global equity market peers in seeing recent gains capped. This would likely be received badly by investors, potentially driving Treasury yields higher and further denting equity market confidence. 'Rishi Sunak's promise to deliver interest rate cuts if he wins the upcoming election won't be a potent enough prospect to lift the mood just yet.'

Source: Daily Mail May 30, 2024 21:38 UTC