FTSE 100 hits new ALL-TIME high of 7,906 after global stocks rally on signs of resilience in US and UK economies, while central banks hint at end to interest rate hikes
- The FTSE 100 index has reached a new all-time high level during trading today
- Boosted by jobs figures in US as well as signs interest rate hikes might be ending
The FTSE 100 hit a new all-time high today after global stocks rallied on signs of economic resilience and an end to interest rate hikes.
The blue-chip index closed at 7,901 – topping the previous record finish of 7,877.45 from May 22, 2018.
It had reached 7,906 during the trading day, another new peak.
The surge was fuelled by better-than-expected jobs figures from the US, as well as continued optimism after the Bank of England downgraded grim recession forecasts for the UK.
The blue-chip index closed at 7,901 – topping the previous record finish of 7,877.45 from May 22, 2018
The Bank of England gave a less gloomy assessment of UK plc’s prospects yesterday than in November
While tech firms have been struggling recently, the FTSE’s more traditional oil and utility companies are proving more attractive.
Central banks have been signalling that interest rate hikes could be coming to an end.
Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown:
‘A Friday feeling of optimism has surged through markets, pushing the FTSE 100 to a record high after US jobs growth powered ahead, and investors shrugged off recession worries.
‘The bumper US non-farm payrolls number, coming in well above estimates, gave the footsie another spring in its step.
‘The FTSE 100 has clearly got its mojo back after a difficult period when investors appeared to have fallen out of love with UK assets.
‘The make-up of the index, heavily weighted towards globally-focused commodities, utilities, financials and consumer giants is proving particularly attractive.’
Sterling sank versus the dollar following a strong US jobs report, which dampened recession concerns.
A weaker Pound often boosts the FTSE 100 as the multinational companies listed on it earn vast sums in dollars.
Shares in Shell surged 3.3 percent to 2,415p, one day after the energy major posted record annual net profit of $42.3billion on high oil and gas prices.
While the UK is still on track for a recession this year, the Bank of England said yesterday it expects the downturn to be softer than it had predicted in November, and much shallower compared to previous recessions like that following the 2008 financial crisis.
It also hinted that interest rates could be nearing a peak, after hiking up the base rate to 4 per cent from 3.5 per cent.
The Bank of England raised interest rates from 3.5 per cent to 4 per cent yesterday – but signalled the hikes might be coming to an end