The FTSE 100 has seen a "surge of power" in recent weeks, as geopolitical tensions ease, Hargreaves Lansdown has stated.

With interest rate cuts expected later in the year and ongoing conflicts keeping defence stocks higher, HL has said that these factors are helping discretionary stocks.

Currently, the blue chip index has been close to an intraday high of 8,047, which is higher than the FTSE’s record closing value of 8,014.

Head of money and markets at HL, Susannah Streeter, said: "London's blue-chip index has had a surge of power as heightened geopolitical tensions have eased, and investors assessed the brighter prospects for the UK economy, with interest rate cuts spied on the horizon.

"With growth in the UK not shooting the lights out, and inflationary pressures showing signs of easing, there is still optimism around about the prospect of interest rate cuts coming later in the summer, which appears to have help the FTSE 100 climb higher.

"As lower borrowing costs are forecast later this year, amid a more slightly more positive outlook for the economy, housebuilders have also headed sharply higher amid hopes that stronger demand will return for new homes. Ocado, J Sainsbury, Next, Marks and Spencer and Tesco have also been lifted amid hopes for more clement conditions for consumers."

Streeter added that although global tensions have decreased, the fear a Russian victory in Ukraine has added to a $60.8bn funding deal from the US House of Representatives, which had increased prices for FTSE 100-listed firms including Rolls Royce and BAE Systems.

The legislation also includes $26bn for Israel and $8.12bn for the Indo-Pacific region, including Taiwan.

Streeter added: "With governments bolstering their defence capabilities, military contractors are eyeing up the potential for lucrative contracts ahead. The expectation that that military budgets will keep expanding has been reinforced by defence chiefs in Nordic countries and the UK calling for better military preparedness over the next decade."

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