UK's FTSE 100 powers ahead to trade at all time highs in uncharted territory

London’s benchmark index of 100 leading British blue-chip stocks surged on Friday to trade in uncharted territory, posting fresh all-time record highs.

At 1540 GMT, the FTSE 100 index ended up 1.1% at 7092.51, marking a fresh high and all time closing high as investors ignore the uncertainty around the upcoming elections and piled into the index on the back of some upbeat news flow.

The national index was boosted by advances by housebuilding stocks on upbeat comments from broker Jefferies.

Shares in Barratt Developments rose 2.5% after Jefferies raised its rating on the firm to "hold" from "underperform", while Taylor Wimpey climbed 2.4% after its rating was raised to "buy" from "hold".

Housebuilders are enjoying a sweet spot ahead of the upcoming UK election as the sector is seen as largely refrained from a negative impact of any possible outcome.

Pharma firm Shire raced up the index to trade 4.7% higher after the US regulators granted a priority review to the firm's dry-eye disease treatment.

Shares in Aberdeen Asset Management were up 4.2% as traders linked a more bullish outlook for emerging markets being a driver behind the rally for asset managers like Aberdeen who have significant exposure in Asian, African and Latin American assets.

Meanwhile, ITV shares got a boost from Morgan Stanley who pinned a bullish note on the company and its earnings and advertising outlook over the next three years. ITV shares were last seen up by 2.8%.

In currency markets, sterling fell to a near five-year low against the US dollar after UK industrial output rose by just 0.1% in February from the month before, suggesting that growth in the economy has slowed in the first quarter of the year.

The pound fell by 0.4% against the dollar to $1.4651, with traders attributing some concerns about a potential lead in the polls and possibility of a tie-up of the Scottish National Party and Labour post elections next month.

Earlier, the NIESR UK gross domestic product estimate came in the same as last month’s figure at 0.6%.

Spreadex analyst Connor Campbell noted that this reading doesn't chime with the fears of economists, “who suggested that the UK’s limp production data could lead to a weakened first quarter GDP figure at the end of April - a worry for the Tories considering the UK’s economic recovery has been somewhat of a trump card for the Conservative party in their run ins with Labour.”