AJ Bell on the FTSE's record close
“Confidence is easy to knock, hard to rebuild, and a powerful force when it comes to market performance. Currently London’s blue-chip index is surfing a wave of investor optimism, with the FTSE 100 closing at another fresh record high,” says Danni Hewson, head of financial analysis at AJ Bell, adding:
“Classy and classic sectors like finance, pharma, big oil and high street retail stalwarts are back in fashion, with investors looking for consistent, income driving stocks as a companion to the jam tomorrow tech titans which have dominated US markets over the past couple of years.
Last year might have provided no end of worrying headlines but markets took most of those geopolitical tensions in their stride, and current questions about what the White House may or may not be considering are broadly being overlooked, for now.”
FTSE 100's best day since last July
And finally, a newsflash! The UK’s stock market has just posted its best day in six months.
The FTSE 100 index, which tracks the biggest companies listed in London, has closed 118 points higher tonight at 10,122 points, a gain of 1.18% and a new closing high.
That’s the biggest daily percentage increase since 10 July, and also the largest points gain since last April when markets were rallying after Donald Trump paused his ‘Liberation Day’ tariffs.
Precious metals producer Fresnillo (+5.2%) was the top riser, following today’s gains in the gold price, followed by Next (+4.9%) which cheered the City by lifting its profit forecasts this morning. Miners and pharmaceuticals firms were also among the risers.
Today’s gains come after the FTSE 100 broke through the 10,000 point mark for the first time last Friday.
Gerald Toledano, group head of equities at FTSE Russell, says:
“The FTSE 100 passing 10,000 points is a landmark moment for the UK market. It demonstrates the enduring dynamism of British companies and the important role London continues to play as a global financial centre.”
Around three-quarters of the revenue of FTSE 100 companies comes from overseas, as many of its members are multinationals, so it’s a better gauge of the world economy than the UK.
Earlier today, Japan’s Nikkei closed at a record high and the US Dow Jones industrial average hit a new intraday peak, highlighting that the US intervention into Venezuela has not spooked investors.
Neil Wilson, UK investor strategist at Saxo Markets, explains:
Long term macro shifting trends in microcosm – deglobalisation, multipolarity, geopolitical risk, economic policy uncertainty, trade disruption...it’s all there in the Venezuela situation and we can expect more to come. Removing Maduro is just the latest phase in Trump’s reordering the global balance of power via a mix of trade, economic, diplomatic and military means.
So, evolution not revolution but let’s not diminish what a big deal this is and what it points to. It marks a major shift in the way the global power game is played, and we cannot ignore what risks this could pose to investors even if markets kinda yawned and shrugged off the geopolitics for the moment.
That’s all for tonight…. GW
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