So on Thursday, the FTSE got a nice boost from the slumping pound, which dove after the BoE “succeeded” (whatever that means in this context) in pulling off a dovish hike.
In fact, the hike was so dovish that 5-year gilt yields fell the most since August 2016, which was when the BoE cut rates following Brexit.
Well fast forward to Friday and the FTSE is set for a record close, building on Thursday’s gains as the pound holds losses:
Remember, three-quarters of the sales of FTSE 100 constituents come from abroad and on Thursday, the 40-day correlation between the FTSE and the pound turned the most negative ever.
So thanks Mark Carney! By telegraphing a one and done, you’ve given the green light for everyone to pile in to UK stocks at a time when no one even knows what the country’s future is in the world.