The FTSE 100 hit another all-time high this morning following its record performance yesterday.
The index, of the 100 most valuable companies on the London Stock Exchange, soared to 8,071 points shortly after the opening. It marks a new “intraday” (during the day) record.
Later in the morning, the FTSE 100 eased back to 8,060 points, but was still up nearly 0.5% on yesterday. The score is based on a calculation of the total value of the shares on the index.
It comes after the index reported a record-high closing figure of 8,023 yesterday following a fall in the value of the pound. A lower pound makes it cheaper for foreign investors to invest in FTSE companies.
One of the reasons the pound is falling against the dollar is interest rates are expected to stay higher for longer in the US – meaning investors will get better returns on their US investments.
The strong performance this morning raises the prospect we could see another record close at the end of today’s trading.
Danni Hewson, from investment platform AJ Bell, said the figures were “psychologically important for investors and for London markets as a whole” as the capital has been lagging behind its rivals, particularly the US, in recent years.
Among the firms doing very well this morning is JD Sports. The retailer’s shares are up more than 7% in early trading following reports that it is set to buy US rival Hibbett for $1.08bn (£0.87bn).
On the currency markets, £1 will buy you $1.23 US or €1.15, similar to yesterday’s five-month lows for the pound.
The price of a barrel of Brent crude oil is up almost 1% at nearly $88 (£71) this morning.
Leave a Reply