FTSE 100 notches best week of the year as string of good news ends winter blues
The FTSE 100 continued its record breaking run in style, recording its best week of the year so far.
The blue-chip index closed 0.63 per cent higher at 8,433.76 having set a new all-time high of 8,455.20 earlier in the morning.
Friday’s rally was largely driven by miners who were lifted on the back of takeover speculation and higher prices for metals and minerals.
Glencore was among the FTSE’s strongest performer, rising 2.5 per cent. Anglo American gained 1.8 per cent while Antofagasta rose 0.9 per cent.
Sentiment was also given a lift by stronger than expected GDP figures. The UK economy grew 0.6 per cent in the first quarter of the year, ahead of the 0.4 per cent expected by economists.
The figures also confirmed that last year’s shallow recession is over. The FTSE 250, which is more aligned with the health of the domestic economy, gained 0.56 per cent to 20,645.38.
“The UK economy has jogged out of recession, picking up pace more than expected,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.
“It’s clear a corner has been turned, as intense cost-of-living pressures subside, and consumers and companies eye lower borrowing costs on the horizon.”
Friday’s rally continues a strong run for the FTSE 100. Over the past month or so it has outperformed every major European and US index.
Since it surpassed its previous record high in February last year, the index has closed higher on 11 out of the last 15 trading days.
Just this week it has gained 3.2 per cent, putting it on track for its best week all year. Only once this year, at the end of April, has the FTSE gained more than three per cent in a week.
Its strong recent run means London’s premier index is now performing roughly in line with global peers, up 9.2 per cent over the course of the year.
The CAC in Paris has gained a similar amount to the FTSE 100 although Frankfurt’s DAX is up nearer 12 per cent. The S&P 500 has climbed nearly 10 per cent and the Nasdaq around 11 per cent.