FTSE 100 hits fresh record high on rate cut optimism

July 14 (Reuters) - The UK's FTSE 100 closed at a fresh record high as investors grew hopeful of future interest rate cuts by the Bank of England, while AstraZeneca's shares gained following positive drug trial results.

The blue-chip FTSE 100 .FTSE rose 0.6% to close at 8998.06 points, nearing the 9000-points mark, while the domestically oriented FTSE 250 index .FTMC added 0.5%.

AstraZeneca AZN.L climbed 2% after the pharmaceutical giant said its experimental drug baxdrostat succeeded in lowering high blood pressure in a late-stage study of people whose condition was hard to control or treat.

Associated British Foods ABF.L rose 2% after brokerage Panmure Liberum upgraded the retailer's stock to "buy."

Britain's labour market cooled sharply in June and the number of people available for work jumped at the fastest pace since the COVID-19 pandemic, according to data also watched by the Bank of England.

The BoE is expected to cut interest rates next month for the fifth time since last August, with traders betting on an 89% chance of a 25 bps reduction, as per data compiled by LSEG.

The country's inflation figures and employment data later this week are likely to offer fresh cues on the central bank's rate path.

Investors will look out for fresh notes on the nation's fiscal health when finance minister Rachel Reeves, alongside BoE Governor Andrew Bailey, gives the annual Mansion House speech to London's financial sector on Tuesday.

The commodity-heavy FTSE 100 touched fresh peaks last week as U.S. President Donald Trump's plans to impose tariffs on key trading partners, as well as copper prices, sent commodity prices higher, in turn lifting miners such as Glencore GLEN.L and Rio Tinto RIO.L.

The European Union accused the U.S. of resisting efforts to agree a trade deal and warned of countermeasures if no deal was struck to avoid the "absolutely unacceptable" 30% tariffs Trump has threatened to impose from August 1.

Among other stocks, Ashmore <ASHM.L> gained 1.4% after the emerging markets-focussed asset manager reported slower quarterly net outflows.