Skip to main content

Investors cheered as FTSE 100 hits near 13-year high

The FTSE 100 closed at its highest level for 13 years again today as shares continued a winning streak supported by central banks cutting interest rates and maintaining their policies of money printing.

The blue chip London share index closed 48.24 points higher at 6803.87 surpassing yesterday's close of 6755.63 and surging past the next closing benchmark of 6795 from 1 September 2000.The last time the FTSE 100 index read above 6,800 was in December 1999 when it achieved 6,806.51. 

Nothing appeared to be able to stop the blue chip index rising, even a second successive annual fall in profits at Marks & Spencer failed to dent the progress of the UK's biggest 100 firms. M&S shares also rose 5.3 per cent to 464.20p despite its poor results.

On the up: The FTSE 100 has finally regained the ground lost to the financial crisis, thanks a to a stellar rise this year so far.

Investors got a further shot in the arm in the morning when official figures revealed the rate of inflation dropped substantially in April, with the official consumer prices index measure recorded at 2.4 per cent, down from 2.8 per cent in March. 

The lower than expected inflation figure eases the pressure on the Bank of England to tackle rising prices by reining in its quantitative easing money-printing or raising the Bank Rate from its record 0.5 per cent low.

This loose monetary policy has been providing substantial support to the market and the Bank recently outlined plans to push more cheap credit into the economy with a renewed drive to ensure its Funding for Lending scheme means lower loan rates for businesses and cheaper mortgages for homeowners.

  More... DIY share dealing: Cheap flat-fee service for £12.50 Fund supermarket: Pay 0% initial commission on all funds and Isas bought online Get a free guide to investing Isas from Hargreaves Lansdown

The FTSE 250 index, considered a better barometer of UK PLC, is trading at record levels and closed higher by 84.53 points at 14805.45 having close 27 points higher at 14,720.9 yesterday.

The FTSE 100 close yesterday was the highest posted since September 2000. It now up 15 per cent this year, while the FTSE 250 is up 19.5 per cent.

The main index  is now within reach of the all time-high of 6,930, hit before the dotcom boom crashed to earth in 1999.

There has been speculation that this level could be taken out by the strong rally of recent months, however

Stock markets around the world have recorded big gains in recent months, as investors have shrugged off worries over the eurozone debt crisis, a Chinese slowdown and the US economy's fragile recovery.

The US S&P 500 and Dow Jones Index have been trading at record highs, as has Germany's Dax index, while Japan's main markets have seen huge gains. 

Analysts have warned, however, that gains are being driven by sentiment rather than earnings, , many are warning that investors should expect a correction.

  More... DIY share dealing: Cheap flat-fee service for £12.50 Fund supermarket: Pay 0% initial commission on all funds and Isas bought online Get a free guide to investing Isas from Hargreaves Lansdown

 

Investor confidence has been bolstered by further gains made in Japan, where attempts to revive its moribund economy with a huge dose of money printing appear to be paying off.

The Japanese government upgraded its assessment of the economy as emerging signs of an upturn in exports and factory output added to growing evidence that Prime Minister Shinzo Abe's aggressive polices are beginning to reignite growth.

Investors have seen big gains in the Japanese markets this year, with the Nikkei index up almost 50 per cent.

This has led to some suggesting that it may time to take profits or ease back on new investment.

Thomas Becket, chief investment officer of Psigma Investment Management, said: 'This week we committed an act of treachery by recommending that our Investment Managers reduce their Japanese exposure. 

'Having benefited from an explosive period of performance from the Land of the Rising Market in the last six months, we decided that Japanese stocks had risen too far, too quickly, whilst the yen had gone the opposite way. 

'Our view remains that there is opportunity aplenty and more to come from Japan, but in the short term we are more cautious and believe it is right to reduce our long Japanese exporters / short the yen trade.'

He added: 'Our latest strategy is to do something that investors have rarely had the opportunity to do in the last two and a half decades and to take profits in Japan, whilst maintaining a decent exposure.'

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o