Home Business NewsBusiness FTSE 100 consolidates gains above 7,000

FTSE 100 consolidates gains above 7,000

by LLB Editor
19th Apr 21 9:16 am

The FTSE 100 consolidated its position as investors balanced reopening optimism with a need to take stock after the index closed above 7,000 for the first time post-Covid says AJ Bell investment director Russ Mould.

“Sunny weather should have given retailers and hospitality businesses in England a boost over the weekend and this helps explain why the more domestic-facing FTSE 250 outperformed its large-cap counterpart and is marking new record levels.

“All eyes will now be on whether the FTSE 100 itself can push yet higher and challenge its own all-time high of nearly 7,900 as the economy continues its recovery from the pandemic.

“On a day when the headlines are all about a breakaway super league shaking up the football world, it’s worth remembering that the performance of the FTSE 100 has been anything but ‘super’ when comparing global stock market league tables.

“The future direction of oil prices and the market’s current preference for value stocks are likely to be key to any new record for the FTSE 100 as these factors have been a big reason behind the index’s advance so far in 2021.

“One potential headwind for oil is a possible return to Iranian production to the market amid discussions over the country’s nuclear agreement and a potential softening of US sanctions.”

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