FTSE 100 hits new RECORD for 2016, soars above 6,400 level

The FTSE 100 just hit a new record for 2016, rising above the 6,400 level in early trading.

This comes after oil prices recovered following industrial action by Kuwaiti oil workers.

Here’s what analysts have to say:

Lee Wild, of Interactive Investor, told the Telegrpah: “It may appear to make little real sense, but the relationship between oil and share prices remains closer than ever.

“Oil has shaken off its post-Doha depression, recouping all of Monday’s early losses, underpinned by a strike in Kuwait which is taking almost 2m barrels of oil out of the system every day.

“Like a lost dog, equity markets followed oil steadily through Monday, too, and oil has been the cue for another risk-on rally Tuesday.  There’s also support from the US where the Dow Jones closed above 18,000 Monday for the first time since last July. With profit expectations so low this quarterly reporting season, it’s hardly surprising that many American companies are managing to nudge past forecasts.”

Naeem Aslam, chief market analyst at Avatrade, told City A.M: “The stability in oil prices has strengthened attitudes among traders who are developing a strong appetite for riskier assets.

“After an initial plunge in oil prices due to a failed meeting in Doha, oil prices recovered remarkably and this has served as a signal that no more adverse news can cause any major dents for oil. However, it is pairing some gains today.”