The article highlights the disconnection between stock market indices like the FTSE 100 and national economic health. On a day when the FTSE 100 surged to a new closing high, the Bank of England cut interest rates in response to a weak UK economy. A significant portion of FTSE 100 revenues comes from international markets, diminishing the impact of domestic economic shifts. This trend suggests that global factors may be more influential than local ones in driving index performance.
The FTSE 100 is an international index, and its rise does not reflect UK economic health, evidenced by the Bank of England cutting rates due to a stagnant economy.
Despite the FTSE 100's strong performance, only 22% of its revenues come from the UK, highlighting the importance of international earnings for its constituents.
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