The FTSE 100 scaled new highs yesterday as hopes of a trade deal between the US and the EU gave global stock markets a lift.
With traders also cheering upbeat results from the likes of Reckitt Benckiser and BT – and eyeing potential interest rate cuts this summer – the blue-chip index rose 0.9 per cent, or 76.88 points, to 9138.37.
That took gains for the year to close to 12 per cent.
‘The FTSE 100 has sprung to life,’ said David Morrison, senior market analyst at Trade Nation.
‘Having broken above 9000 for the first time ever at the beginning of last week, upside momentum has been building.’
The mood has been buoyed by cooling trade tensions around the world following Donald Trump’s trade deal with Japan.
Footsie rally: The blue-chip index rose 0.9%, or 76.88 points, to 9138.37. That took gains for the year to close to 12p
It is now hoped that the European Union will reach a similar agreement with America – though the terms look set to be worse than those secured by Britain.
In what has been hailed as a Brexit dividend, most British exports to the US face tariffs of 10 per cent, compared to the 15 per cent rate that has been secured by Japan and targeted by Brussels.
Cooling trade tensions as well as upbeat corporate results have boosted share prices lately.
Investors also believe the Bank of England will cut UK interest rates next month. The latest rally came despite a 9.5 per cent slump in the Tesla share price in New York yesterday after boss Elon Musk warned of ‘a few rough quarters’ ahead.
‘European shares marched higher as the positive sentiment generated by the trade deal agreed between the US and Japan continued to permeate the markets,’ said AJ Bell investment director Russ Mould.
‘The continued momentum came despite a mixed start to the big tech earnings season across the Atlantic, with some well-received corporate results helping to support UK stocks as the FTSE 100 sailed through the 9100 barrier.’
Neil Wilson, UK investor strategist at Saxo Markets, said: ‘The winning streak continues with the index jumping to a fresh record.
Hopeful noises on trade with the EU and the US heading towards a Japan-style 15 per cent tariff rate is enough to support the mood.’
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Footsie hits another record high on hopes of a trade deal between the US and the EU