The· FTSE 100 For the first time since the Covid-19 pandemic caused the collapse of the global market last year, it closed over 7,000. This is due to rising expectations of the global economy after record growth in China.
The UK’s major equity index rose 36 points (0.5%) on Friday to close at 7,019. This is the highest level since the first wave in late February 2020. Covid-19 has sent a shock wave to financial markets around the world..
On a day of growing optimism among financial investors across Europe and Wall Street, the Dow Jones Industrial Average in New York rose 0.3% by midnight, and the German DAX 30 index rose 1.3%. France’s CAC 40 rose 0.9%.
Focused on the country FTSE The UK Equity 250 Index hit a record high of 22,522, up 0.2%. This was boosted by travel and leisure stocks in anticipation of a consumer spending boom as blockades were eased.
Official figures show that China’s economy continued to recover from the pandemic, with record growth of 18.3% in the first quarter of 2021 creating new momentum. Analysts said the numbers, supported by higher plant production, are expected to give a stronger recovery to the global economy and increase demand for raw materials.
The FTSE 100 was in demand by mining companies and oil producers. The biggest rise on Friday was the natural resource company Evraz, which rose almost 4% a day, but bank stocks also rose.
The recovery of the FTSE 100 is backed by accelerated global economic growth backed by the Coronavirus Vaccine Program and deregulation in some major powers.
Retailers, such as Tesco and Next, who are in a position to benefit from increased consumer spending after the blockade, rose at the FTSE 100. Travel and tourism shares also rose at the FTSE 250, airline easyJet rose 0.5%, and holiday company TUI rose by a similar amount. WH Smith, who runs stores at airports and train stations, finished the day with a 1.5% increase.
Despite breaking through the 7,000 psychologically significant barriers, the FTSE 100 is more than 500 points below its early level last year, lagging behind several other major markets, including the Dow Jones and Nikkei in Japan. ..
The London market is seeing more mining and oil companies suffering from sluggish global demand during the Covid crisis, and fewer major tech companies riding the wave of the investment boom.
Steve Clayton, fund manager for equity broker Hargreaves Landsdown, said:
“But today, the FTSE 100 has passed a major milestone and has surpassed 7,000 for the first time since the pandemic broke out a year ago. As it has reached, investors are more confident in the economic recovery. “
Evidence of strong global growth in the United States and China is pushing up the stock market, hoping that the vaccine program will reduce infection rates and return to a relatively normal state sooner, analysts said.
However, increased infections and new blockade measures will rapidly slow the progression. There are also concerns about new geopolitical tensions. U.S. imposes sanctions on RussiaAnd fear that faster economic growth could cause bouts of inflationary pressure and lead to higher central bank interest rates that put a brake on growth.
The global market recovery came after China reported strong growth in all sectors. According to official data, the country’s industrial output increased 14.1% year-on-year in March, with first-quarter growth of 24.5%. Retail sales surged 33.9% in three months.
China was the only major economy to grow in 2020, supported by industrial activity and higher-than-expected exports as a virus. Hit markets around the world..
The coronavirus first appeared in central China in late 2019, but the country also recovered the fastest after authorities imposed strict controls and consumers stayed home.
The FTSE 100 has closed over 7,000 for the first time since Covid’s crash. FTSE
Source link The FTSE 100 has closed over 7,000 for the first time since Covid’s crash. FTSE