Buoyant FTSE 100 reaches all-time high

Both the FTSE (The Financial Times Stock Exchange) 100 and the FTSE All-Share finished the week ending 3 May 2024 at all-time highs.

Each index has risen by around 6% from the start of the year, and at around 10% since their year lows in mid-January. So far, this is a significant improvement on 2023, when they both only managed to rise by 2.4% over the whole year.

The FTSE 100 accounts for nearly 85% of the market capitalisation of the FTSE All-Share, so it is not surprising that the two have moved in tandem.

There are several factors that are believed to have contributed to the rise. Borrowing costs, for example, are likely to fall later this year, if the Bank of England cuts Bank Rate from its current level of 5.25% as expected.

Sterling has also dipped against the US Dollar, to the benefit of FTSE 100 companies, because a major part of their revenues come from overseas.

As well as this, the conflicts in Europe and the Middle East have increased commodity prices, which has been helpful to oil and mining companies, as these are some of the largest in the FTSE 100.

Whilst a number of expert commentators have given a positive outlook for the rest of 2024, the international situation remains uncertain. There are many factors that can determine the rise and fall of the stock market, and this article is not intended as financial advice.

Hartey Wealth Management provides investment planning and financial advice in Cheshire, Oswestry and other counties, which are tailored to each individual’s needs. Those with significant funds to invest may particularly benefit from wealth management advice.

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