Tuesday, 16 May 2017

FTSE 100 crosses 7,500 point barrier to set new high for third day

Investors have piled in to UK blue-chip stocks, helping the FTSE 100 close at a record high for the third trading day running.
It broke through the 7,500-points level for the first time to finish Tuesday's session at 7,522 points, having reached a new intra-day trading high of 7,533 in the afternoon.

The performance was aided by a 0.8% fall in sterling's value versus the euro. That tends to bolster the value of firms with significant earnings in the eurozone as the firms benefit when the currency is converted to pounds.

The single currency strengthened on further evidence of an improving eurozone economy, traders said.

On the FTSE 100, Vodafone was the top riser, gaining 4% on the promise of improved dividends which distracted from a £5.2bn annual loss.

The recent surge follows a roller coaster of a year for the index, which has benefited from the currency effects of the Brexit vote and promises of major US investment by President Donald Trump.
But the announcement of a snap General Election for the UK prompted a recovery in the value of the pound versus the dollar last month, hitting values.

Commenting on the latest market movements, senior Hargreaves Lansdown analyst Laith Khalaf said: "It's a red letter day for investors who continue to see the value of their pensions and ISAs rise with the UK stock market.

"An improving global economy, a weaker pound and higher commodity prices are behind the surge in share prices.

"It's quite amazing to think the footsie has gained 2,000 points in the last fifteen months against a background of weak investor confidence.

"In the short term the market can of course move in either direction but investors will be thinking that the 8,000 mark is hovering into view."

SKY       News.

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