The FTSE 100 has reached another record high
The FTSE 100 smashed a new record as investors returned to their desks after the New Year break.
London’s blue chip index briefly broke through the 7,200 points mark before paring to just below 7,180 points at the close – yet another record-breaking measure. It recorded a rise of over 60 points on Tuesday to peak at 7,205.45.
The FTSE had previously pushed to three successive record highs before the New Year holiday as miners drove end-of-year gains. It ended 2016 on a record close of 7,142.83 points.
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A weaker pound – especially in relation to the surging dollar – has contributed to rises over the past two months, with UK-listed multinationals benefiting from earnings in different currencies being worth more in sterling.
“It seems like a very happy New Year so far, with the FTSE lifting to another record high this Tuesday morning,” said Connor Campbell, an analyst at Spreadex.
“For now, at least, investors are ignoring the potentially disruptive events littered across 2017 – most pertinent to the FTSE being March’s triggering of Article 50 and the impending announcements related to the banking sector’s decision whether or not to stay in the UK post-Brexit,” he added.
Read more: The FTSE 100 finished the year at another all-time high
Ipek Ozkardeskaya, senior market analyst at London Capital Group: "A softer pound, firmer oil and commodity prices and solid appetite in the stock markets hint at the possibility of a further rise toward fresh historical highs."
Investment broker Hargreaves Lansdown led gains, rising by 4.62 per cent in afternoon trading.
However, it was the banking sector which mainly drove the FTSE higher, with Barclays increasing 3.98 per cent, and Lloyds close behind on a 3.60 per cent gain.
Gains were broad-based, with InterContinental Hotels Group rising well over four per cent in morning trading before falling back slightly with a gain of just over 1.5 per cent at the time of publication.