FTSE 100 up 0.6, FTSE 250 adds 0.4
Vodafone up after UK government approves merger
UK39;s economy grew 0.6 in Q1
Anglo American up after Rio Tinto considered an offer

May 10 Reuters London39;s FTSE 100 hit a fresh record high on Friday as investors cheered the dovish tone of the Bank of England, while the British economy grew better than expected in the first quarter this year.

The bluechip FTSE 100 climbed 0.6, notching an allnew peak and breaching the 8,400 mark. The midcap FTSE 250 inched up 0.4

Both indexes were set to log a third consecutive week of gains, aided by a weaker pound that fell to a twoweek low on Thursday and last steadied at 1.25335.

It feels as if the mood music on rates is changing. The UK market still feels very cheap on earnings and it39;s still very unloved. If people decide to change their minds, it could be quite interesting, said Russ Mould, investment director at AJ Bell.

The British economy exited a recession with a betterthanexpected 0.6 growth in the first quarter, while investors continued to cheer the dovish tone the BoE took on Thursday after it paved the way for the start of interest rate cuts as soon as next month.

Among sectors, industrial and precious metal miners led the gains, rising 1.8 each as prices of gold and most base metals advanced on Friday.

Major energy firms like BP and Shell also elevated the FTSE 100 as oil prices rose after data from China and the U.S. pointed to higher demand.

Anglo American rose 1.8…