FTSE 100 on a record-breaking run

FTSE 100 on a record-breaking run

The FTSE 100 has been on a record-breaking run recently climbing above the 7,500 level for the very first time. Analysts have put this down to the continuing weakness in the pound, a recovery in commodity stocks and a general confidence in the outcome of the UK election.

Jasper Lawler of long established traders LCG said : “Investors seem to be feeling confident about the outlook for Britain under what is expected to be the biggest Conservative party majority since Margaret Thatcher.”

Laith Khalaf, analyst at Hargreaves Lansdown added : “Investors will be thinking that the 8,000 mark is hovering into view.”

Sterling dipped again recently after the latest UK inflation report. Generally speaking, a weaker pound is good for the FTSE 100 because many companies on the index have significant revenues from overseas. This means that these revenues are worth more when converted back into sterling.

The pound has also slipped 0.7% against the euro, making Britain’s exports more affordable to the European market.

It will be interesting to see how the FTSE 100 continues to perform as we move closer to the election date of 8th June.