(qlmbusinessnews.com via cityam.com – – Tue, 16 May, 2017) London, Uk – –
The FTSE 100 rose steadily to yet another record high, breaking the symbolically important 7,500 point mark in morning trading as the pound dipped.
The index rose by more than 0.57 per cent at the time of writing to reach 7,505.46 points.
Meanwhile sterling fell below $1.29 against the US dollar despite inflation data overshooting consensus expectations.
London’s blue chip index also benefited from a strong rise from telecoms giant Vodafone despite some big share price falls from some smaller constituents.
Vodafone announced a £5.6bn loss thanks to currency movements, but it also said it would increase earnings next year.
The new high water mark comes after an extraordinary rally in the FTSE 100 over the last 12 months.
The latest leg of the rally has been driven by an improving global outlook, with higher commodity prices in the short term as well as favourable news for growth from the Donald Trump administration in the US.
The index has now rallied by almost 30 per cent from the lows below 5,800 points hit after the EU referendum. That surge was in part caused by the weakness in sterling, which fell sharply against the dollar, increasing the value of UK-listed companies' dollar earnings overnight.
The referendum came at the end of an extended period of weak global growth which saw the FTSE 100 fall to its lowest level since 2012 in February 2016. However, global growth has since picked up, boosting the multinational companies that make up London’s benchmark index.
The rising tide has not been limited to blue chip stocks, with the FTSE all-share index also hitting a fresh record high on Tuesday, continuing a strong rally since the end of 2016 into uncharted territory.
The FTSE 250 index has also hit records as recently as April.