The UK’s FTSE 100 index has hit a new alltime high at the start of trading in London.
The blue-chip share index has hit 7926 points, as it surges over the record high set on Friday (which was the first since 2018).
As explained in the opening post, the rally comes as hopes build that the UK economy could fare better in 2023 than feared, with the NIESR thinktank predicting a recession could be avoided.
Shares are also benefiting from hopes that central banks could end their interest rate increases soon.
Victoria Scholar, head of investment at Interactive Investor, tells us: “The FTSE 100 has hit a record high again, surpassing Friday’s peak. Following a wobbly start to the week in which global equities were hit by concerns about a more hawkish path from the Fed after a strong US jobs report as well as heightened US-Sino tensions, the UK large-cap index has restored its bullish momentum.
“Yesterday Fed Chair Jerome Powell said inflation is easing, raising hopes that the US could be approaching the peak for interest rates. A strong close on Wall Street with the Nasdaq closing up by 1.9% has helped drive a positive start to the European session.
“Over a one-year period, Pearson is the best performing stock on the FTSE 100 followed by BAE Systems and Antofagasta. Over the past one month, JD Sports is the top performer with IAG and 3i in second and third place.
“The pound is trading higher against the greenback driven by US dollar weakness against most European currencies today following Powell’s relatively hopeful remarks about the outlook for US inflation.”