FTSE 100 hits 8,000 points for first time as recession fears ease
Britain’s FTSE 100 share index has passed 8,000 points for the first time, as fears of a global recession ease.
In an afternoon surge, the index of the largest 100 companies listed on the London Stock Exchange hit 8.003, a new record.
The FTSE 100, which is dominated by multinational companies, has been lifted by optimism that the global economy could fare better than feared this year.
Mining and oil giants benefiting from a commodities boom and sky-high energy prices have also helped propel the index higher.
The reopening of China’s economy, as Beijing relaxes Covid restrictions, should boost demand and ease supply chain disruption, economists say. On Monday, the European Commission lifted its growth forecasts, saying it no longer expects the European Union to fall into recession in 2023.
Hopes that inflation has peaked also lifted stock markets this year, on hopes that central banks could stop increasing interest rates soon. Inflation fell in the UK andthe US in January.
Victoria Scholar, head of investment at Interactive Investor, said: “Despite the doom and gloom, the FTSE 100 continues to reach fresh record highs, touching the key 8,000 technical and psychological milestone for the first time in its history.
“The landmark level underscores the divergence between the macroeconomic fundamentals and more forward looking market prices with equities pricing in the prospect of peak interest rates and tempering inflation.”
Shares in the oil companies BP and Shell have rallied this year, as both reported record profits for 2022 due to the jump in energy prices after the Ukraine war.
The FTSE 100 hit its first record high in more than four years in early February.
The index was created in January 1984, beginning at 1,000 points.
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